Poundland's future hangs in the balance as chain edges towards collapse

Poundland's bosses have filed a notice of intention to appoint administrators to the business, the BBC understands, raising fears about its collapse.

The legal move, which has yet to be approved by the High Court, gives 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 on Tuesday saying the American owner of the chain had limited the chain's access to funding.

Gordon Brothers bought Poundland, which had been struggling, from the Polish retail group Pepco last year for a nominal £1.