Sales at Poundland are reportedly soaring - despite the discount chain's owners filing a notice of intention to appoint administrators earlier this week.
Investment firm Gordon Brothers has shut more than 100 stores and two warehouses in South Yorkshire and the Midlands since its takeover last year.
It is now thought that as many as 12,000 jobs could be at risk after the budget retailer contacted the High Court on Thursday regarding administration.
The company has ten days to find a buyer, though Gordon Brothers has faced criticism after it rejected a deal made with Martin Property Group to sell up.
In a statement, Poundland suggested the chain would now instead be broken up and sold off after receiving formal offers from 'several established retail operators' that cover a 'significant part of the business'.
Yet, despite this, business at Poundland has actually improved in recent weeks in what has been dubbed 'a return to profitability' by bosses, according to The Times.
A note sent to suppliers - and seen by the publication - revealed that sales were up 8.4 per cent in the three weeks preceding October 18.
Sales, margins and gross profits were said to be 'running comfortably ahead of expectations', while a source described business as 'flying'.
Sales at Poundland are reportedly soaring - despite the discount chain's owners filing a notice of intention to appoint administrators earlier this week
It comes as Gordon Brothers faces scrutiny for its refusal to agree to the rescue deal offered by Martin Group, with unions accusing the company of being 'determined' to let Poundland fall into disarray.
Talks collapsed between the two companies after Gordon Brothers insisted the buyer should shoulder a £30million loan inherited when it bought the chain for a nominal sum of £1 in June 2025.
Business Secretary Jonathan Reynolds has demanded an explanation from Gordon Brothers, telling the BBC: 'If there is a potential owner that can continue that progress, obviously that naturally sounds like the best way forward. So if that hasn't been accepted, I want to know why that is the case.'
Poundland's founder Steve Smith, who began the business in 1990, accused the current owners of being 'greedy' in a statement released this weekend.
Mr Smith has claimed that should the company be allowed to collapse it could trigger the loss of a whopping 30,000 jobs across multiple areas.
'If Gordon Brothers are being greedy then it is going to cost thousands of jobs, in the newspapers it says 12,000 jobs are at risk. My estimate is more like 30,000 jobs,' he said in a lengthy post on LinkedIn.
'It is not just the people that work for Poundland it is also their suppliers they have thousands of suppliers, some that just serve them, therefore these suppliers will suffer or be at risk of going into administration.'
Mr Smith added that if the store does go into administration it will be taxpayers who will foot the bill for the thousands of people out of work while the liquidators will 'make a lot of money'.
He also claimed that he tried 'several times' to speak to the current owners but they 'never returned my call'.
Should Poundland collapse it would mark one of the biggest high street collapses since Debenhams closed its doors in 2021. That closure led to the loss of around 12,000 jobs.
The Prime Minister - whose Makerfield constituency houses a Poundland distribution centre where 270 jobs could be lost - said he wanted to protect jobs when he was asked about the situation at Poundland earlier this month.
'We want to see jobs protected. If there was a potential owner to avoid this that hasn't been accepted, then the Business Secretary [Jonathan Reynolds] and I want to know why that is the case,' said Andy Burnham.
In a social media post, Reform's Robert Jenrick claimed that should the company collapse it would be an example of 'crony capitalism'.
He said: 'People have attacked me for taking up this fight, saying: "Businesses go under all the time, that's just the free market".
'Sure, but this is crony capitalism and the 12,000 workers deserve better.'
Poundland has struggled in recent years after 'straying from the single £1 price point that defined its core identity' and expanding into selling clothes and frozen food, said retail expert Jonathan De Mello.
Retailers are also battling higher costs, following Government moves to hike wages and employer National Insurance contributions, while shoppers have been lured in by online giants Amazon and Temu.
Other firms thought to be hoping to buy shops include rival Poundstretcher, which is owned by US investment group Fortress, and retailers including Iceland and Lidl.
CDS Superstores, the group behind The Range, Homebase and Wilko, is also thought to be interested. The group is owned by Chris Dawson, known as Britain's 'Del Boy Billionaire'.
Modella Capital, which bought WH Smith on the High Street and rebranded under TG Jones, has also been rumoured to be involved in talks.
Bally Auluk, national officer for the Union of Shop, Distributive and Allied Workers, said this week has been 'incredibly distressing' for Poundland staff and accused Gordon Brothers of attempting to 'jeopardise their livelihoods'.
He urged its owners to 'reconsider and to prioritise a unified buyer'.
The Daily Mail has approached Gordon Brothers and Pepco for a comment.
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