12,000 jobs at risk as high street chain Wilko plans to enter administration

Around 12.000 jobs are at risk after high street retail giant Wilko unveiled plans to appoint administrators.

The boss of the homeware and hardware chain, which has an outlet in Sunderland's Fawcett Street, said it is expected to enter insolvency after failing to secure a takeover to help the business with 'mounting cash pressures'.

Wilko, which has about 400 shops, filed a notice of intention to appoint administrators at the High Court on Thursday.

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.

"Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.

"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.

"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."

GMB national president Andy Prendergast said: "This is extremely concerning but we remain hopeful that a buyer can be found.

"Wilko’s staff deserve reassurance that their jobs are safe. We hope this is the number one priority going forward."