High street discounter Poundland has filed to appoint administrators, threatening the future of around 12,000 workers.

Court filings show that the retailer has filed a notice of intention to appoint administrators on Thursday afternoon, which will give the business 10 working days of breathing space from creditors to secure a potential rescue deal.

Advisers are still in talks with parties interested in buying the brand and swathes of stores.

Poundland managing director Barry Williams said: “Despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole.

“The process has however attracted several established retail operators who have made formal offers. Collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs.

“We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment.”

He added that the retailer will be working closely with its advisers to “identify and deliver the best possible outcome”.

It is understood corporate advisory firm AlixPartners will be appointed as administrators.

Poundland stressed that all its stores remain open and trading as normal despite the insolvency process.

It comes after owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder earlier this month.

Gordon Brothers – which only bought Poundland last year for £1 – launched a sale process for the retailer at the start of September.

Poundland currently runs around 600 stores across the UK.

Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are all understood to be interested in buying parts of the Poundland business.

Other retailers including B&M, Lidl and Aldi are also reportedly interested in buying stores.

However, deals are unlikely to include all Poundland stores and some jobs are likely to be impacted.

Gordon Brothers had overseen a major turnaround programme at Poundland which had already resulted in the firm shutting more than 100 shops over the past year in an effort to shore up its finances.

However, the impending insolvency comes amid reports of increasing friction between Gordon Brothers and Poundland management.

The owners rejected the solvent takeover bid from Martin partly due to expectations that bidders stump up £30 million to cover a loan Gordon Brothers took on from its takeover last year.

Mr Williams told staff in a memo earlier this week that the situation was “unexpected, unwanted and wholly avoidable”.