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.

The chain has been struggling for a number of years due to pressures including rising costs and competition.

However, it expects sales to have grown more than 3% in 2026 compared with the previous year, which managing director Barry Williams said earlier this month was evidence that its recovery plan “is working”.

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.

Mr Williams, along with the firm’s leadership team and Andy Bond, a former 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.

A Poundland source disputed this, however, saying the Martin Property Group is part of the sale process and remains the management team’s preferred partner.

Retail analyst Catherine Shuttleworth said there were “tough times” on the High Street for all retailers.

She said retailers were struggling with “significantly subdued consumer confidence as prices continue to rise” due to higher fuel costs.

Poundland itself faces intense competition from rivals including B&M, Aldi, Lidl and from online retailers including Temu and TikTok Shop.

The business “lost its strong £1 identity leaving shoppers to think it was getting too expensive”, Shuttleworth 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.