Wilko, the discount retailer, could be saved from collapse by corporate restructuring firm Gordon Brothers, the group behind the closure of 153 Laura Ashley stores, as its advisors try to structure a deal.
Providing an offer to facilitate a restructuring plan, which could entail substantial store closures and workforce reductions, Gordon Brothers would need to inject £70 million into the business to keep creditors at bay.
Last week, Wilko said it was on the precipice of appointing administrators, which could see around 12,000 jobs put at risk.
A successful rescue by Gordon Brothers is deemed relatively low by insiders, but it may explore a potential partnership with other financial investors, who would inject approximately £20 million in equity while it provides £50 million in debt financing.
Leading the push at Gordon Brothers is the head of European operations Mark Newton-Jones, a seasoned executive with experiences at Next, Very Group, and Mothercare.
Interest has also arisen from turnaround investors like Alteri and Opcapita, but the chances of a rescue ahead of insolvency proceedings remain unlikely.
PricewaterhouseCoopers (PwC), advising the family-owned retailer, is reportedly seeking binding offers within the coming days, given Wilko's imminent cash shortage.
If appointed as administrator, PwC will initiate a further sale process and, in the absence of a viable deal, proceed with liquidating Wilko's assets, with Hilco, the restructuring firm, owed £40 million by the group.