Retail chain Poundland is in talks with potential buyers as it seeks a rescue deal, it has confirmed.
Executives are working with an Irish property development group on a management buyout, as first reported by Sky News, external.
But a union representing shopworkers warned that the retailer could fall into administration if that deal falls through, putting thousands of jobs at risk.
This outcome would be "a disaster for our members", the Usdaw union said.
Poundland has about 600 stores in the UK and Ireland, and 12,000 employees.