Poundland's board meets on Wednesday night to decide whether to extend the creditor moratorium keeping the discounter out of administration, with the current 10-day freeze set to expire within hours.

Directors Barry Williams, Poundland's managing director, and finance chief Shaun Wills will weigh the extension at an emergency board meeting, sources told City A.M. Both are expected to agree to prolong the breathing space. Poundland filed a notice of intention to appoint administrators last month.

The decision lands hours after Gordon Brothers, the Boston-based investment firm that owns Poundland, was grilled behind closed doors for two hours by MPs on Parliament's business select committee.

Committee chair Liam Byrne MP said on Wednesday night: "After extensive cross examination this afternoon, I'm deeply concerned that Gordon Brothers behaviour may have jeopardised thousands of jobs on Britain's high streets. Gordon Brothers refused to say it will prioritise saving jobs over and above its own financial returns."

What did the hearing reveal?

Mark Newton-Jones, the Gordon Brothers executive questioned by MPs, told the committee he would support a move to hold off administrators — though the final call rests with Williams and Wills, not the owner.

Newton-Jones denied that Gordon Brothers had restricted Poundland's access to funding during the sale process, a claim made by Steve Smith, the retailer's founder. He also defended the firm's commitment to protecting Poundland's 12,000 jobs, though one MP noted he had not mentioned the company's staff until late in the session.

The two accounts of Poundland's health diverged sharply. Williams and Wills told MPs the investment firm had made it harder for the retailer to access funds with which to pay suppliers. Gordon Brothers, by contrast, suggested the business had turned a corner and pointed to an expected £18m profit.

Byrne pressed the funding question directly. "There's concerning signs [Poundland has] been strangled of access to its own funds in what should be its busiest trading period in the run up to Christmas," he said. Gordon Brothers claims it has made all funds available when requested.

Why is Gordon Brothers under scrutiny?

The investment firm released £10m of funding to Poundland earlier this week, days before its executive faced the committee. The release followed weeks of pressure over its handling of the sale process.

Gordon Brothers has refused a number of solvent offers to buy Poundland, insisting first on repayment of a £22.5m loan it inherited when it bought the retailer for just £1 last year. That stance has fed speculation that the group is trying to push the retailer towards collapse so it can recover more money by selling off assets to multiple buyers — a theory the firm rejects.

Newton-Jones appeared "exasperated at the media coverage" of the sale process and "tried to paint Gordon Brothers as the savior of the situation," one person with knowledge of the session said. That person added they have "very little confidence" the investment firm wants to keep Poundland intact.

Who might buy Poundland?

Gordon Brothers is in talks with three parties over a solvent takeover, sources said:

• Martin Property Group, owner of car park operator NCP
• Xyra Group, a little-known investor
• Innovest Holdings, an Irish investment firm

If those talks fail and Poundland tips into administration, a second tier of buyers stands ready. Tesco, B&M, Lidl, Iceland, The Range and Poundstretcher are all waiting to snap up the retailer's stores and stock — an outcome that would break up the chain but leave individual sites trading under new owners.

What changes tonight?

The moratorium extension would buy Poundland time to complete a solvent sale rather than enter administration. If Williams and Wills trigger it, the creditors' freeze continues and the talks with Martin Property Group, Xyra and Innovest Holdings carry on.

If they do not, the 10-day window closes and creditors can move to call in their debts, forcing the administration process the notice of intention anticipated last month. For 12,000 staff and a high street chain heading into its busiest trading weeks, the boardroom decision now carries more weight than any committee hearing.