Business Secretary Jonathan Reynolds has met the US-based owners of Poundland as the government hopes to save the retailer from collapse.
The discount chain is on the brink of insolvency and Gordon Brothers, which bought it for £1 last June, has rejected a takeover bid which could have saved the 12,000 jobs currently at risk.
A meeting was due to be held on Thursday but has been brought forward as the scramble to secure a rescue deal for the firm intensifies.
Gordon Brothers has previously said Poundland faces multiple economic challenges from rising inflation, increasing staff costs, and “severe levels of shoplifting”.
Both Reynolds and Prime Minister Andy Burnham have questioned why a deal for the future of the business has not been made.
On Wednesday, a source close to business secretary said Reynolds “has been firm that Gordon Brothers must do everything in their power to protect jobs and provide certainty for workers”.
“He is pleased to have secured this commitment from Gordon Brothers in the meeting and will continue to hold the company to account and closely monitor developments,” the source added.
It is understood that Gordon Brothers made a commitment in the meeting to prioritise bids that will protect workers and units.
However, it is still unclear whether the US investment firm will keep the business together or break it up.
Meanwhile, MPs say they have called in Poundland’s owners for questioning on Wednesday 11 November to explain their role in the discount retailer’s looming insolvency.
Liam Byrne, chair of Parliament’s business committee, said: “Every report suggests Poundland is a viable, profitable business with a future ahead of it and without good reason to let it crash and burn – and then to break it up and sell it off piece by piece.
“We are asking Gordon Brothers to appear before Parliament to explain themselves and tell us just what it is that’s preventing them from accepting the fully-funded deal on the table to save more than 12,000 jobs.”
Business Minister Kate Dearden and union representatives met Poundland’s managing director Barry Williams on Wednesday.
Mr Williams told the BBC that Poundland is profitable and sales were growing.
“We’re back in profit and it has a bright future ahead of it if it’s allowed to deliver that,” he said.
Poundland has filed a notice of intention to appoint administrators, which protects it from its creditors until next Thursday.
