Poundworld has plunged into administration putting around 5,100 jobs at risk.
Deloitte restructuring partners Daniel Butters and Clare Boardman have been appointed joint administrators of Poundworld.
The collapse of the discount retailer was blamed on “high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market”.
It will continue to trade while a buyer for all or part of the business is sought. The administrators said there are no redundancies or store closures at this time.
Its stores sell 8,000 product lines, mostly priced at £1, including groceries, toiletries, household cleaning products and confectionery.
The retailer, based near Wakefield in West Yorkshire, has 335 stores.
Boardman said: “The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business.
“Unfortunately this has not been possible. We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen.”
A spokesperson for Poundworld owner TPG said: “This was a difficult decision for every party involved. We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees.
“Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.”