The UK government has suggested it could step into Poundland’s administration over reports that the discount retailer’s owner has blocked viable rescue deals, according to The Telegraph.

The business secretary Jonathan Reynolds told the publication that Poundland’s owner, Gordon Brothers, has both a legal and moral duty to support the chain, which reports suggest will turn a £15 million profit in 2026.

“I’m deeply concerned to see the reports swirling around Poundland’s uncertain future and the impact that could have on the 12,000 staff and their families, who are at the forefront of my mind,” he said.

“The Prime Minister and I stand ready to take action to help workers and reassure families however we can.”

Last week, Poundland owner Gordon Brothers appointed administrators, putting over 10,000 jobs at risk ahead of the peak Christmas period.

The news came after Poundland rejected an offer from Martin Property Group (MPG), which people close to the deal said would see the Northern Irish real estate investor keep all 600 of Poundland’s UK stores open.

The Guardian reported that MPG agreed to repay half of a £30 million shareholder loan controlled by Gordon Brothers, which fell short of the latter’s hopes.

In mid-October, Poundland had confirmed to the BBC that it had found a potential partner for a management buyout, led by its managing director Barry Williams and former Asda chief executive Andy Bond.

In a letter to Poundland employees seen by the Telegraph, Williams called Gordon Brothers’s decision “unexpected, unwanted and wholly avoidable” and said the retailer’s management is now seeking legal advice.

Earlier in the month, Sky News had separately reported that bidders including B&M, Lidl, Poundstretcher and The Range had submitted bids to take over a small number of Poundland stores.

The prime minister Andy Burnham told the BBC last week that the government is “ready to support” Poundland staff and said that he is looking into the details of its insolvency.

“We want to see jobs protected,” he told the BBC. “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.”

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