Wilko has appointed administrators after failing to secure a rescue deal.
The move puts around 12,000 jobs at risk.
The homeware and hardware retailer runs more than 400 stores across the UK.
Mark Jackson, chief executive officer of Wilko, said the firm had received rescue offers but was “left with no choice but to take this unfortunate action” after being unable to close a deal within time.
Wilko has more than 400 stores
PA
Mr Jackson said: “While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, without the surety of being able to complete the deal within the necessary timeframe, and given the cash position, we’ve been left with no choice but to take this unfortunate action.”
He said the retailer has pressed ahead with a turnaround plan, including cost savings, which “would have delivered the most profitable Wilko ever recorded within 24 months".
The high street chain has appointed administrators from PwC.
In a letter, Mr Jackson wrote: “Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
“We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Administrators at PwC confirmed Wilko will continue to trade from all its stores “without any immediate redundancies” following their appointment this morning.
Zelf Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well-loved, family business that has been on the high street for over 90 years has had to go into administration today.
“Many high street retailers are facing a number of well-documented challenges and Wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.
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“As administrators, we will continue to engage with parties who may be interested in acquiring all or part of the business.
“Stores will continue to trade as normal for the time being and staff will continue to be paid.”
Kevin Mountford, savings expert and co-founder of Raisin UK, commented: “Wilko has struggled to keep up with competitors, with the majority of stores being in the city centre and away from the convenience of out-of-town sites.
“With the success of B&M and Home Bargains, the budget retail sector is highly competitive and the location of these stores has been the biggest challenge, and may be a bigger challenge when administrators look at selling the business."
The savings expert said for customers, at the moment, “it’s business as usual”.
He said: “When businesses enter administration, it's the time to use any gift cards as these can be no longer accepted at any time."
Customers reacted to the news online, with one writing on Facebook: "What am I going to do without my pic n mix."(sic)
Another posted on X: "This is going to affect millions of people including myself who use Wilko for no end of things that you just can't get hold of anymore without having to purchase online."
