Poundland hopes to secure more time to negotiate a rescue deal as the struggling retailer nears a deadline that could determine the future of its 600 shops and 11,000 employees.
The discount chain filed a notice of intention to appoint administrators at the end of October, giving it 10 days of protection to seek a potential buyer.
That period is due to expire at midnight on Wednesday.
No agreement has yet been reached, but sources cited by the BBC said the company expects to obtain an extension, allowing negotiations to continue.
The retailer’s owners are understood to have released about £10 million in funding to help meet immediate costs, including staff wages, tax bills and payments to stock suppliers.
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An extension would keep open the possibility of a deal acceptable to the company’s creditors. Without one, administrators are expected to be appointed, with restructuring specialist AlixPartners understood to be lined up.
Advisers have been speaking to several potential buyers about acquiring the brand or parts of the business. Tesco has held discussions over proposals to take on as many as 150 shops, while Iceland and Lidl have also been linked to interest in the retailer.
Investment firm Xyra Holdings has emerged as a possible bidder for the entire business. Irish property group Martin Property Group is also believed to remain interested.
Gordon Brothers, which previously rejected an offer from Martin, named the property group as its preferred bidder last month.
The outcome of the negotiations will determine whether Poundland can avoid administration and preserve at least part of its extensive UK store network.
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