Poundland’s directors are poised to appoint administrators as the beleaguered discount retailer staggers towards collapse. 

The company is preparing to make a filing to the High Court, which could come as soon as Wednesday evening, which would fire the starting gun on its race to find buyers for its assets and new homes for its nearly 12,000 staff. 

Poundland had been considering a solvent takeover offer from Irish property firm Martin Property Group but has since distanced itself from the bid in a row over cash. 

This appointment of administrators would trigger a 10-day moratorium on its creditors calling in their debts, allowing it a short window in which to save its stores and employees.  

The filing would not mean that Poundland is destined for total collapse but the decision by its owners, American investment firm Gordon Brothers, not to accept Martin Property Group’s offer makes it more likely the firm will be broken up. 

A number of big-name retailers are circling Poundland in the hopes of picking up some of its 600 stores and 12,000 employees. These include Lidl, Iceland, B&M, The Range and Poundstretcher, Poundland’s US rival.

Martin Property Group’s bid for the retailer had been endorsed by Barry Williams, its managing director, but was stalled because the Irish firm has not offered to pay up front for a £30m loan Gordon Brothers inherited when it bought the retailer for a nominal £1 last year.

The refusal of Poundland’s owners to accept this offer caused fury among the three directors who had been drafted in to advise on the retailer’s sale, prompting their resignation.

Williams wrote to staff on Tuesday to tell them that this situation was “unexpected, unwanted and wholly avoidable”. 

Martin Property Group’s offer was “a fully funded, ready-to-go bid that would have kept the business intact and able to continue the remarkable progress we have made,” he said in a letter first seen by The Times.

The Irish property firm has not ruled out making an improved offer. Gordon Brothers would re-engage with the group if it committed to paying the £30m loan up front, sources said.

Usdaw, the retail workers’ union, said on Wednesday afternoon that Poundland is teetering on the brink of administration and urged the government to intervene. 

Bally Auluk, the group’s national officer, said: “The owners’ failure to accept a solvent offer leads us to conclude they want to let the company fall into administration and make 11,000 people redundant in the run up to Christmas. I urge the Government to take robust action and save thousands of retail jobs.”

AlixPartners and Gordon Brothers declined to comment.