Poundworld has become the latest retail casualty on the British high street as it called in administrators, putting 5,100 jobs at risk.
The budget retailer has around 40 stores in our region and about 400 employees.
Poundworld has appointed Deloitte to handle an administration after last-ditch rescue talks with R Capital broke down over the weekend.
Poundworld, which is owned by TPG Capital, has 335 stores. The move comes after both Toys R Us and Maplin fell into administration earlier this year.
Deloitte will try to find a buyer for the business, and has said there are no redundancies or store closures at this time.
She said the business was hit by falling footfall, alongside rising costs and weak consumer confidence.
A spokesman for TPG said putting the business into administration was a 'difficult decision'.
'We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees,' he added.
'Despite investing resources to strengthen the business, the decline in UK retail and challenging behaviour affected Poundworld significantly.'