More than 5,000 jobs are at risk after West Yorkshire-based Poundworld called in the administrators.
The budget retailer, which was has its head office in Normanton, Wakefield, collapsed after last-ditch rescue talks broke down over the weekend.
The company, which is owned by TPG Capital, has 335 stores including more than 40 in Yorkshire and Lincolnshire.
Administrator Deloitte has been called in and will try to find a buyer for the business, which has said there are no redundancies or store closures at this time.
Poundworld's losses widened in 2016-17 to £17.1 million, from £5.4 million of losses the year before.