Troubled Wilko suspends home deliveries amid efforts to avoid collapse

It comes almost a week after Wilko filed a notice of intent to appoint administrators, preparing itself for a potential insolvency.

The process provided the group with 10 working days to find a buyer for all or part of the business as it seeks to avoid going bust.

The company is looking for a potential buyer and is understood to have held talks with interested parties.

Gordon Brothers, which owns the Laura Ashley brand, is reported to be among those to have held discussions over a possible to deal to secure Wilko’s future.

Earlier this year, the retailer – which has around 400 shops and 12,000 employees – hired advisers from PwC in a bid to find a buyer to secure fresh funding to keep the firm trading.

Last year, Wilko agreed a deal to borrow £40m from restructuring specialist Hilco after posting significant losses.

Last Thursday, Wilko said it had “no choice” but to file for the potential insolvency but would continue a possible rescue takeover.

Announcing the insolvency preparations, chief executive Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.”