Carpetright (Other OTC: CGHXF - news), Marks & Spencer (Frankfurt: 534418 - news), Mothercare (Other OTC: MHCRF - news) and New Look are among the other retailers which have announced store closure plans this year, with thousands of jobs disappearing as a effect.
Deloitte is expected to be appointed to oversee the administration.
The discount retailer had been in talks with private equity firm R Capital over the weekend, but administrators have been called in after the negotiations broke down.
Bargain Buys in Stevenage, which is part of the Poundworld chain.
Clare Boardman, joint administrator of Poundworld, said that the chain had been affected by the "challenging" retail environment. Unfortunately, this has not been possible'.
Deloitte will try to find a buyer for the business, and has said there are no redundancies or store closures at this time. "We thank all employees for their support at this hard time".
Poundworld, which is owned by TPG Capital, has around 335 stores, employing 5,100 people.
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A spokesman for TPG said putting the business into administration was a "difficult decision".
Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street.
Poundworld's losses widened in 2016-17 to £17.1m, from £5.4m of losses the year before.
"We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees", he added.
'Even if Poundworld is lucky enough to be rescued by a white knight, it's still likely that a large proportion of its store portfolio would close for good, meaning yet more empty retail space gathering dust across the High Street'.
Restaurant groups including Carluccio's, Prezzo and Byron have also been shutting dozens of branches as they are squeezed by rising costs and a fall in consumer spending.