Poundland is in talks with potential buyers as it seeks a rescue deal, the company confirmed.

Executives are working with Irish property development group Martin Property Group on a management buyout. Martin Property Group is the management team's preferred partner, a spokesman said, but the team will work with whoever can deliver the best result for the business, colleagues and suppliers.

The retailer has about 600 stores in the UK and Ireland and employs 12,000 people. Usdaw union, which represents shopworkers, warned that the chain could fall into administration if the buyout fails. Bally Auluk, a national officer at Usdaw, said there are deep concerns that the business could go into administration should this buyout fail. He added that a management buy-out has been attempted and offers are being turned down. A Poundland source disputed this, saying Martin Property Group is part of the sale process and remains the preferred partner.

Poundland was sold for £1 last summer by previous owner Pepco to US investment firm Gordon Brothers. The current owners are seeking buyers while the management attempts a buyout.

Managing director Barry Williams said earlier this month that sales were expected to grow more than 3% in 2026 compared with the previous year, evidence that the recovery plan is working.

Retail analyst Catherine Shuttleworth said there are tough times on the High Street for all retailers, with significantly subdued consumer confidence as prices continue to rise due to higher fuel costs. She said Poundland faces intense competition from rivals including B&M, Aldi, Lidl and online retailers Temu and TikTok Shop. The business lost its strong £1 identity leaving shoppers to think it was getting too expensive, she said, and a costly expansion into clothing and frozen food under past management had not been successful. However, increased sales this year showed a deal with Mr Williams as boss would make good sense, she added.