High street braces for yet another blow as bargain shop with 400 stores could be sold

The 93-year-old retail chain has been struggling as a result of shoppers shunning the high street post-Covid.

Wilko is also looking at ways to raise tens of millions of pounds in new funding.

The company, which was founded by James Kensey in 1930, remains privately owned.

The Wilkinson family retains the largest stake in the business but is contemplating giving this up to secure the bargain retailer’s future.

Wilko has around 400 stores nationwide and employs approximately 16,000 people.

The company is looking at restructuring options and is in communication with financial advisors from PricewaterhouseCoopers.

Wilko is considering whether to pursue a company voluntary arrangement.

The arrangement which is being touted in reports is a form of insolvency.

It would enable the business to restructure but continue trading.

The arrangement typically results in closing some stores and negotiating lower rent costs.

Wilko unveiled plans to close 15 stores across the United Kingdom in January.

Stores pulling down the shutters include Shipley, Bournemouth, Stockton, Scunthorpe, Grantham and Redditch.

Mark Jackson, Wilko chief executive, said: "We've been very open that we're exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist.

"We have a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that delivers significant return, accelerated by the investment needed.

"We are actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery."