Fortress Investment Group has abandoned plans to acquire Poundland in its entirety and is now seeking to buy between 200 and 250 of the retailer’s stores, reported Sky News.

The revised proposal from discount store chain Poundstretcher’s owner covers fewer than half of Poundland’s approximately 530 UK outlets.

Competition concerns are understood to have prompted the change in strategy.

If Gordon Brothers, Poundland’s current owner, selects Fortress’s offer, the transaction is expected to proceed through a pre-pack administration.

Such a process could result in significant job losses at a business that employs almost 12,000 people.

Martin Property Group, based in Ireland, is reportedly the only bidder still seeking a solvent takeover of the complete Poundland business.

The company is understood to have the backing of Poundland’s management and has pledged to preserve the chain’s existing stores, workforce and distribution centre in Andy Burnham’s – current Prime Minister of the UK – Makerfield constituency.

Under Martin Property Group’s proposal, Poundland’s equity could change hands for a nominal sum of as little as £1 ($1.32).

The bidder would also take responsibility for repaying the company’s outstanding loans and provide millions of pounds to finance a turnaround programme.

Gordon Brothers is separately seeking repayment in full of a £30m shareholder loan, which it acquired for £1.

Modella Capital, which owns TGJones, has also submitted a bid for the entire retailer. However, it remains unclear whether the offer was likely to progress.

Other interested parties are understood to be targeting selected groups of stores, increasing the prospect that Poundland could be split up.

Gordon Brothers executives, including former Mothercare chief executive Mark Newton-Jones and chief investment officer Frank Morton, are expected to choose a preferred option as soon as next week.

Retail Insight Network has contacted Gordon Brothers for comment.