The owner of British discounter Poundland has announced its intention to appoint administrators to manage the troubled brand as it searches for a buyer, putting more than 10,000 jobs at risk.

Gordon Brothers, Poundland’s owner, filed a notice of intent to appoint administrators on Thursday after rejecting an offer from Northern Ireland’s Martin Property Group (MPG). MPG was Poundland management’s preferred bidder.

Global consultancy AlixPartners is lined up to run the administration process, according to court documents. The move will give Poundland a ten-day reprieve from creditors as it works to find an alternative buyer.

Earlier in October, rival UK discounter B&M was reported to be considering acquiring a small number of Poundland’s stores if it was broken up, alongside Lidl, The Range, and Poundstretcher.

Despite Gordon Brother’s rejection of MPG’s offer, the Derry-based real estate and development company told Sky News on Friday that it remained interested in a takeover.

People close to the process told the news outlet that MPG had reconfirmed two separate proposals that would see a contentious £30 million shareholder loan controlled by Gordon Brothers repaid. These offers are supported by a number of leading Poundland suppliers, the people added.

MPG’s bid would retain all of Poundland’s existing stores and suppliers, Sky reported, preventing mass redundancies before the Christmas period.

The potential breakup of the discounter is highly controversial, with UK prime minister Andy Burnham weighing in on Thursday to support keeping it intact.

“This is a deeply worrying time for Poundland staff and their families,” he told the BBC. “We want to see jobs protected. If there was a potential owner to avoid this that hasn't been accepted, then the business secretary and I want to know why that is the case.”

Business secretary Jonathan Reynolds wrote to Gordon Brothers on Wednesday to ascertain the latest situation at the company, while Poundland boss Barry Williams wrote to staff describing its rejection of MPG’s bid as “unexpected, unwanted and wholly avoidable”.

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