Poundland's owner has been paid £18.3 million in fees and interest since buying the discount retailer for a nominal sum last summer, ministers have been told, as the chain's protection from its creditors runs out on Thursday.

The figure was disclosed to business minister Kate Dearden in a presentation by Poundland executives, according to a government source briefed on the material. Gordon Brothers, the restructuring specialist that became majority owner last June for a price variously described as about £1 or one euro, has not confirmed the £18.3 million figure, and the company has said it has not publicly disclosed financial information about Poundland.

The disclosure comes at a critical moment for the chain, which operates around 600 stores and employs more than 10,000 people. Poundland filed a notice of intention to appoint administrators on 29 October, giving it ten working days of protection from creditors while it seeks a solution. That moratorium is due to expire on Thursday 12 November.

Rescue talks stalled over £30m loan

Negotiations over a rescue have stalled over a £30 million shareholder loan, of which £22.5 million is owed to Gordon Brothers. Pepco Group, the minority shareholder, has offered to defer its £7.5 million share of the loan in an attempt to help a solvent sale go through.

Martin Property Group, a Northern Irish property company, put forward a fully funded solvent proposal to buy the chain, but Gordon Brothers rejected it. The bid was backed by Poundland founder Steve Smith, who has warned that a collapse could leave thousands of staff out of work. Another interested party, Xyra Group Holdings, has not secured financial backers, according to insiders.

Advisory firm AlixPartners has been lined up as administrator in waiting and has asked potential liquidators for proposals to sell off the chain's stores and stock if a going-concern deal cannot be agreed. Insiders said the administration notice was likely to be extended, but whether a further extension will be granted and whether any solvent sale completes remains unresolved.

Blocked from buying stock before Christmas

Poundland has been unable to pay suppliers for new products since 27 October after Gordon Brothers restricted its access to credit facilities and cash generated through trading. As of 3 November, the company reportedly had around £25 million in cash that its management could not access, even though the balance continued to grow through store sales.

That is despite a sharp improvement in trading. Poundland boss Barry Williams told staff on Friday that the business had achieved an £86 million improvement in its financial performance over the past year, a turnaround that makes the stock freeze all the more striking as the crucial Christmas trading period approaches.

Several rival retailers, including B&M, Poundstretcher and Lidl, have been linked with bids for parts of the estate if a full rescue fails. Offers for portions of the chain have already been made, according to reports.

MPs to question owner in private

Pressure on Gordon Brothers is growing in Westminster. The Business and Trade Committee, chaired by Liam Byrne, will question the owner in private on Wednesday 11 November after Gordon Brothers sought to avoid what it called a public hearing.

Poundland's management has also held talks with the government, with Williams and chief financial officer Shaun Wills meeting Kate Dearden last week. What happens next is uncertain: the administration notice could be extended while talks continue, or, if no solvent sale is agreed, administrators could be appointed and parts of the business sold separately.