Wilko looks likely to fall into administration today as hopes of a solvent rescue deal for the retailer fade.
Sky reported that talks with a number of potential rescuers have stalled, putting 12,000 jobs in jeopardy.
It would make the family-owned chain one of the biggest retail casualties for years.
The retailer filed a notice of its intention to appoint an administrator last Thursday but had hoped to figure out a sale in the mean time.
However, talks have stalled and a source told the publication that an administration today was “inevitable”.
Last week Thursday the company filed a notice of intention to appoint administrators, giving it 10 working days of protection from creditors.
Wilko had been in talks with private equity firms Laura Ashley-owner Gordon Brothers, Bensons for Beds-owner Alteri and OpCapital as well as a rival retailer as it sought a rescue deal.
However the rescue deal have now dwindled, meaning PricewaterhouseCoopers (PwC) will run a further sale process in administration or – if that fails – a liquidation of the 93 year-old chain.
There are over 400 Wilko stores, making it one of the biggest privately owned retailers in Britain.
As the cost of living crisis continues, and inflation soars, Wilko has been struggling to keep up with supply chain challenges.
They have now suspended home deliveries amid the scramble for its future.
In recent months, it had been seeking to finalise a company voluntary arrangement (CVA) – a mechanism that would trigger steep rent cuts at hundreds of stores but avoid any closures.
Wilko, which has been owned by the Wilkinson family since it was established, declined to comment on Thursday morning.
Mark Jackson, Wilko chief executive, said recently: “We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”
Late last month, a spokesman for Wilko described talk of administration as “unfounded”.
Gordon Brothers, which rescued the Laura Ashley brand in 2020, was among those who held discussions over Wilko’s future.
The investors were considering a partnership with other financial investors to provide about £20 million of equity, while it would have provided around £50million in debt financing, a source told Sky.
But insiders had conceded at the time that there was a ‘relatively low’ chance a deal could be completed.
Source: Expressnews.co.uk