The discount retailer Poundworld is expected to appoint administrators, putting 5,100 jobs at risk.
"The retail trading environment in the United Kingdom remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business".
A source told Sky News that discussions about a rescue deal between Poundworld's owner, TPG Capital, and Rcapital, had fallen apart over the weekend, days after a bid from Alteri Investors, another turnaround company, had also been terminated.
The appointment of Deloitte as administrators leaves the future of five stores in the county hanging in the balance.
TPG Capital has already been considering a restructure that would lead to 100 of 355 shops being shut.
Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street. No redundancies or store closures being announced at this time.
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Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.
Founded in 1974, Poundworld was sold to United States equity group TPG Capital for £150m in 2015.
Clare Boardman, joint administrator of Poundworld, said that the chain had been affected by the "challenging" retail environment. We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen.
Poundworld has around 350 stores across the United Kingdom, including branches at Bloxwich, the intu Merry Hill shopping centre in Brierley Hill, Hednesford, Lichfield, on the Reedswood Retail Park in Walsall, in Stafford and West Bromwich and two in Wolverhampton.
Poundworld has been losing money for the past two years.