Wilko has gone administration after failing to secure a rescue deal, putting around 12,000 jobs in jeopardy.
The chain, which has more than 400 stores across the UK, told staff that it has brought in administrators from PwC to oversee the process.
CEO Mark Jackson said there had been “a significant level of interest” in the business but management were “left with no choice but to take this unfortunate action”.
In a letter, Mr Jackson said: “Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
“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.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Yesterday the homewares, garden supplies, DIY and stationery chain – which is headquartered in Worksop, Notts – suspended home deliveries, telling customers to use its click and collect service or look for items in its shops.
Last week Wilko announced it had filed a notice of intention to appoint administrators at the High Court after failing to find fresh backing.
Gordon Brothers, which owns the Laura Ashley brand, was reported to be among those to have held discussions over a possible to deal to secure Wilko’s future.
Last year Wilko agreed a deal to borrow £40 million from restructuring specialist Hilco after posting significant losses.
But earlier this year, the retailer – founded in Leicester back in 1930 when JK Wilkinson opened his first ‘Wilkinson’s’ store – hired advisers from PwC in a bid to find a buyer to try and secure fresh funding.
