Wilko buyers need to cough up £70million to SAVE iconic bargain retailer

Wilko revealed it was on the brink of administration earlier this week when it submitted a notice of intent to the High Court.

A rival discount chain and two private equity firms have been named as potential buyers for a deal which would involve slashing rents at Wilko's 400 shops through a company voluntary arrangement.

However, the sheer amount of money needed to save Wilko casts further doubt on whether the retailer can protect 12,000 jobs which remain at risk.

Any buyer would need to pump in £25million to £30million to get supplies moving into Wilko’s shops again.

An additional £40million is needed to pay off onerous debt own to Hilco, The Times has said.

But the restructuring company is willing to continue to lend to Wilko.

Pensions Regulator is also holding talks with the retailer over the fate of its pension schemes

Mike Ashley's Fraser House and Hilco are not thought to be among the potential purchasers.

Wilko could be sold through a pre-pack administration that would result in shop closures if no buyer emerges.

Reports about the amount of money needed to save Wilko came after the bargain retailer announced it would shut 14 stores.

Stores in Bournemouth, Stockton, The Fort Birmingham, Shipley, Scunthorpe, Narborough Road in Leicester, Grantham, Redditch, Rotherham, Skegness, Llanelli, Merthyr Tydfil, Cleethorpes and Woolwich are all set for closure.

Wilko chief executive Mark Jackson said: “We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.”

The bargain retailer is being advised by professional services company PwC.

Property agents CBRE had been brought on board to negotiate with landlords.