The business operates from 335 stores and its head office and distribution centre in Normanton, near Wakefield in West Yorkshire and employs about 5,100 people.
Deloitte is expected to be appointed to oversee the administration.
The retailer's move comes just days after House of Fraser announced plans to shut 31 stores, affecting around 6,000 jobs.
Private equity group TPG Capital, Poundworld's majority owner, put the discount retailer up for sale last month but has failed to find a buyer.
The Derry-based budget retailer, Poundworld, has been placed into administration.
Deloitte said the company would continue to trade while a buyer for all or part of the business is sought.
Carpetright (Other OTC: CGHXF - news), Marks & Spencer (Frankfurt: 534418 - news), Mothercare (Other OTC: MHCRF - news) and New Look are among the other retailers which have announced store closure plans this year, with thousands of jobs disappearing as a outcome.More news: Trump, Pompeo Positive Ahead of NKorean Summit; Officials Meet to Close Differences
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'Unfortunately, this has not been possible.
Toys R Us has already gone into liquidation this year while electronics retailer Maplin is still in administration.
Losses reportedly jumped to £17.1million in 2016 to 2017, from £5.4m the year before. "We thank all employees for their support at this hard time".
"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".
Others undertaking CVAs include New Look, Mothercare and Carpetrights.
Poundworld has around 350 stores across the United Kingdom, including branches at Bloxwich, the intu Merry Hill shopping centre in Brierley Hill, Hednesford, Lichfield, on the Reedswood Retail Park in Walsall, in Stafford and West Bromwich and two in Wolverhampton.
Restaurant businesses have also been looking to cut costs with store closure programmes, with Carluccio's, Byron and Prezzo all implementing CVAs.