Wilko has collapsed into administration, putting 400 shops and 12,000 jobs at risk.

The homeware retailer has been searching for emergency investment after announcing last week that it was planning to appoint administrators.

This gave the firm 10 days to secure a rescue deal. However, it has been unable to come to any arrangement in that time.

Despite having an annual turnover of £1.2bn, Wilko has been struggling with sharp losses and a cash shortage. The company already borrowed £40m from restructuring specialist, Hilco, and has recently cut jobs, changed its leadership team and has sold off a distribution centre.

Chief executive at Wilko, Mark Jackson, said in an open letter: “We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.

“Significant work has been completed to streamline costs and transform the way the business operates and our robust turnaround plan, based on annualised cost savings would have delivered the most profitable Wilko ever recorded within 24 months.

“While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, without the surety of being able to complete the deal within the necessary time frame and given the cash position, we’ve been left with no choice but to take this unfortunate action.”

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