The future of Poundland hangs in the balance as the discount chain edges towards collapse, the BBC understands.
The retailer has filed a notice of intention to appoint administrators, which if approved by the High Court, will give the business 10 days breathing space to find a rescue deal.
Poundland's managing director Barry Williams wrote a memo to his 12,000 staff across its 600 stores in the UK and Ireland saying the US owner of the chain had limited Poundland's access to funding.
Gordon Brothers bought Poundland, which had been struggling, from the Polish retail group Pepco in June last year for a nominal £1.
But little over a year later it put the business up for sale.