Gordon Brothers is reportedly exploring a bid to conduct a deal with struggling retail chain, Wilko.

The discount chain, which sells homeware and household goods, announced last week that it was planning to appoint administrators after failing to find sufficient emergency investment. As a result, some 12,000 jobs are at risk.

Specialist investor, Gordon Brothers, which rescued retail firm Laura Ashley in 2020, is said to be in talks with the retailer about structuring a potential deal, according to Sky News.

The deal could see a restructure implemented, which would lead to a significant number of store closures and job losses.

Overall, Wilko has an annual turnover of £1.2bn with 400 stores located across the UK.

According to Sky sources, Gordon Brothers were considering a partnership with other investors to provide around £20m of equity, whilst it would provide around £50m in debt financing.

However, sources have told Sky that a potential deal to rescue the struggling retailer were “relatively low”.

In a statement, chief executive officer at Wilko, 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. 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.”

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