Poundland set for more time to secure a rescue deal as emergency talks continue

Poundland looks set to avoid immediate collapse after its US owners told MPs on Wednesday they were in favour of extending a deadline to find a rescue deal. The discount chain, which has 11,000 employees, has been edging towards administration after being blocked by Gordon Borthers from accessing cash in its bank accounts. A deadline to secure a buyer for the business is set to expire at midnight, but sources close to the situation told the BBC they expect more time will be given, thanks to the release of £10m in funding.

A committee of MPs questioned Gordon Brothers following accusations that the investment firm hopes to profit from selling off Poundland's 600 stores and stock piecemeal. But pressure remains on Poundland's owners after a takeover bid was rejected. The decision prompted calls for answers from politicians, including Prime Minister Andy Burnham.

About £50m had been frozen by Gordon Brothers, the BBC understands, meaning Poundland bosses were unable to restock shelves across its 600 shops.