Poundland, the discount retail chain, appears on course to be sold as its owner rues an “increasingly challenging” retail landscape in the UK.

Poland-based Pepco Group said on Wednesday that it was examining all options for the 825-strong chain, including a sale.

But the company later told the Reuters news agency that it had received interest from potential buyers.

Money latest: Why are there no bananas in Tesco?

Sky News revealed in January that Pepco had drafted in City advisers to explore options for the Poundland business amid strong competition in a crowded bargain space and weak demand for its product ranges.

Last year, the British discounter – which employs roughly 18,000 people – recorded €2bn (£1.7bn) of sales.

In December, Pepco revealed a £642m (€775m) charge to Poundland citing several major headwinds including rising costs.

The company said it was being made worse by the government’s hikes to employer national insurance contributions from April.

Chief executive Stephan Borchert told Reuters: “There are definitely interested parties for this business.”

He declined to comment on the type of interest, what stage talks had reached, or what Poundland was worth, but said he was confident its future would be decided by September this year.

The company told investors that the wider business across central and eastern Europe, under the Pepco and Dealz brands, was moving away from fast-moving consumer goods to focus on its higher-margin clothing and general merchandise proposition.

Shares in Pepco Group rose by up to 7.2%.