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 others buyers are found, 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.
The chain has been struggling for a number of years due to pressures including rising costs and competition.
The retailer was sold for £1 last summer by previous owner Pepco to US investment firm Gordon Brothers.
The current owners are in the process of seeking buyers, with the Poundland management attempting a buyout, a spokesman said.
Poundland’s managing director Barry Williams, along with the firm’s leadership team and Andy Bond, the current chairman of Pepco, have been working with Irish real estate firm Martin Property Group on a management buyout.
Martin Property Group is the management team’s “preferred partner”, the spokesman said, but the team will “work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape,” he added.
However, Bally Auluk, a national officer at Usdaw, said there are “deep concerns that the business could go into administration” should this buyout fail.
“We are aware that a management buy-out has been attempted and we are told that their offers are being turned down,” he added.