WILKO is in talks with the firm behind Laura Ashley to rescue the brand as it teeters on the brink of collapse.
Gordon Brothers, which specialises in restructuring retail businesses, is in talks to rescue the ailing high street brand, according to Sky News.
Hundreds of Wilko stores are at risk of closing as the retailer is on the brink of collapsingCredit: Getty
Sources told Sky that the owner of Laura Ashley could offer to fund a major restructuring plan to help save Wilko.
The brand is also in talks with several other buyers but there’s no indication as to whether any formal offer could be on the table.
Wilko filed for a notice of intent to appoint administrators last week on August 3.
A notice of intention essentially means Wilko has a 10-day window to secure a deal while it’s still protected from action by other creditors.
Wilko has 400 shops across the whole of the UK and employs around 12,000 people in total.
Gordon Brothers is a specialist in retail restructuring and helped rescue Laura Ashley from the brink of collapse.
The homeware brand was rescued by the firm and still operates in 48 Next stores across the country.
Gordon Brothers has also helped liquidate big brands that previously filed for bankruptcy in the US – including Bed Bath & Beyond and Hollywood Video.
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However, there’s no guarantee that the talks between Gordon Brothers and Wilko will result in a deal.
Bosses were said to be exploring the sale of a controlling stake in the company just last month.
The retailer is being advised by PwC, and property agents CBRE have been brought on board to negotiate with landlords.
If Wilko does file for administration, all control of the business is passed to an appointed administrator.
So far, chain bosses haven’t revealed what will happen to all 400 shops and staff.
All sites will continue to operate as normal for now, and even if administrators are brought in, the stores could still keep going if the company is bought by someone else.
The company announced plans to close over a dozen of its shops in January last year.
Then in February 202 …