Other parties named as possible buyers for the business, which is owned by TPG Capital, were turnaround specialist Alteri Investors and Poundworld's founder Chris Edwards, but a deal couldn't be struck.
It's not known how many people are employed at the branch in Corporation Street in Corby and Northfield Avenue.
Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name.
The budget retailer is now calling in administrators at Deloitte.
The retailer's move comes just days after House of Fraser announced plans to shut 31 stores, affecting around 6,000 jobs.
Poundworld, based near Wakefield, northern England, is the latest British retailer to be hit by rising costs, cash-strapped consumers and a shift to online shopping.
However, Deloitte said that the business would continue trading, with no store closures or redundancies planned at this time. Unfortunately, this has not been possible'.
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The demise of Poundworld follows the collapse into administration earlier this year of both high street electronics firm Maplin and Toys R Us. "We still believe a buyer can be found for the business or at least part of it", she said.
In 2016-17, losses for the financial year were £17.1m, up from £5.4m the year before. "We thank all employees for their support at this hard time".
A spokesman for TPG said putting the business into administration was a "difficult decision".
Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.
The largest Poundworld workforce is at the Longwood Retail Park in Newtownabbey.
"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".
Restaurant businesses have also been looking to cut costs with store closure programmes, with Carluccio's, Byron and Prezzo all implementing CVAs.