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.

It is understood advisers are still in talks with parties interested in buying the brand and swathes of stores.

The move means around 12,000 jobs are at risk. Poundland currently runs around 600 stores across the UK .

Poundland managing director Barry Williams told staff in a memo that the situation is “unexpected, unwanted and wholly avoidable”.

Poundland managing director Barry Williams told staff in a memo that the situation is 'unexpected, unwanted and wholly avoidable' (Getty)

A statement from Board of Poundland Limited reads: “Over the past two months, initially prompted by interest from several parties, we have been working on a formal sale process…