The Telegraph understands TPG wants to buy time in order to push through a deal with Rcapital, the company behind Little Chef, either through a solvent sale or a pre-pack administration.
It is understood that the discount chain is low on cash and is filing the notice because it will give the business protection from its creditors for up to two weeks.
Poundworld, which is owned by TPG Captial, had previously rejected offers to sell through a pre-pack but all options are now being considered.More news: Liverpool target Alisson Becker wants future resolved before World Cup starts
Alteri's withdrawal came just days after it had looked poised to clinch a takeover of the chain that would have preserved thousands of jobs despite a proposal to axe more than 100 stores.
Yesterday it was reported that the founder of Poundworld was putting together a rescue package to prevent its collapse after a potential buyer walked away from rescue talks.
A potential buyer for troubled discount retailer Poundworld is understood to have walked away from talks, with the company potentially set to appoint administrators if a deal can not be completed.More news: Australia head to Russia 'buzzing' after Hungary win
According to The Press Association, a failure at this stage to track down an appropriate new owner could result in the collapse of the firm, with its losses already significantly increased from £5.2 million in 2015-16 to £17.1 million in 2016-17 and set to rise further in the next 12 months.
The company's recent travails were sparked when the United States private-equity company TPG Capital put the company up for sale in May.
Retailers Maplins, Toys "R" Us, Mothercare, Carpetright, plus a string of restaurant chains, have hit the headlines this year because of trading trouble.More news: Kim Kardashian West shares glimpse at Kanye’s birthday bash
Poundworld has also expanded its product range in a bid to keep pace with rivals.