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Wilko bargain chain on brink of collapse with 12,000 jobs at risk

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    Budget retailed Wilko has filed a notice of intent to appoint administrators, which will put around 12,000 jobs at risk.

    The high street retailer said in a statement that they had received indicative offers to help recapitalise but none provided sufficient funds in the correct time frame.

    Wilko, which has around 400 stores, said in a notice filed at the high court today that it had appointed advisory firm PricewaterhouseCoopers to try to find a buyer in recent months in a bid to secure the additional cash to keep trading.

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    Mark Jackson, the chief executive of Wilko, 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.

    “Unfortunately, with this in mind, today we’re having to take the difficult decision to file a [notice of intention to appoint administrators].”

    Jackson said the business would continue to hold discussions with interested parties and aim to secure its future “as fast as possible".

    “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,” he said.

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    The Guardian reported last year that the retailer borrowed £40million from restructuring specialist Hilco.

    Wilko also cut jobs and rejigged its leadership team as it faced a cash squeeze after falling to a loss and needed to find new funds by the end of this month.

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