UK discount retailer Poundworld is on the brink of collapse with an administrator about to be appointed following the collapse of talks with a potential angel investor.

The Guardian reports the company has filed a notice of intention to appoint an administrator, giving the company 10 business days protection from its creditors, and management time to finalise a restructuring plan to keep the 355-store chain trading.

The UK financial press reports that Deloitte has been appointed to oversee the administration process and was already working on a plan as a contingency should a new owner not be found.

Retail turnaround specialist Alteri Investors this week walked away from talks over taking over the ailing company leaving the owners with no other option than to commence administration procedures, given the business is running low on cash.

Poundworld is owned by US private-equity company TPG Capital. Last financial year it lost £17.1 million, more than three times the loss of the prior year.