Discount retailer 99p Stores has been placed into administration.
The group was bought by Willenhall-based rival Poundland in 2015 for £55 million and around 250 of the 99p Stores were transferred to Poundland leases following the deal.
But around 60 of the group's shops remained on the old 99p Stores leases under a subsidiary company and these have since closed.
Financial services firm Alix Partners has been appointed as administrator but it is expected the impact on jobs will be limited as Poundland operates shops close the 99p Stores units which are shutting.
A statement from Poundland said: "We can confirm that the separate 99p Stores company has entered administration.
"The administrator is Alix Partners and they will be responsible for communication regarding the company and its liabilities.
"As we've always said, it's no secret the previous management of Poundland had difficulties digesting its 99p stores acquisition.
"However, we've largely completed the store closure programme that addressed the remaining overlaps from that 99p acquisition - importantly, with very limited impact on jobs because we have stores located near to those we're closing.
"The administration has no impact on Poundland itself which, of course, is a robust, thriving business serving over seven million shoppers a week."
Last summer, South African retailer Steinhoff International agreed a £597 million deal to take over Poundland.
Steinhoff also owns Bensons for Beds and Harveys.