More than 10,000 Wilko’s staff are facing redundancy after a rescue deal for the beleaguered retailer with HMV boss Doug Putnam collapsed this morning.
Officials at the GMB union predicted that all of the group’s 400 stores would now close by October.
Nadine Houghton, GMB national officer, said: “This isn’t a tragedy without cause. Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners.”
Wilko first ran into problems during the pandemic, which saw the footfall to its stores collapse, while competition from such as B&M and Poundland has intensified.
Some of Wilko's remaining stores could be sold to rival retailers, such as Poundland or The Range, with administrators expected to announce the details of job losses and store closures in the coming days.
PwC has already announced about 1,600 redundancies since the family-owned chain crashed into insolvency last month.
Sky News suggested the deal with Putnam broke down over the central costs associated with taking on the chain's infrastructure.
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