Retail investor in talks with Wilko in last-ditch bid to save struggling Worksop company

Gordon Brothers, which has backed British high street names including Laura Ashley, is in talks with Wilko's advisers about structuring a potential deal.

However, if a deal can be brokered, it would still lead to a significant number of store closures and redundancies, Sky News has reported.

Last week, Wilko confirmed that it was filing a notice of intention to appoint administrators, putting as many as 12,000 jobs at risk.

Insiders said this week that the chances of Gordon Brothers reaching a deal to rescue Wilko were "relatively low".

Sky News reported that the project is being overseen by former Next and Mothercare boss Mark Newton-Jones, who was appointed to head up Gordon Brothers’ European operations back in February.

Turnaround investors Alteri and Opcapita are also said to be exploring offers for the retailer in recent weeks but are unlikely to secure a deal ahead of a formal insolvency process.

The family-owned chain filed a notice of intention to appoint administrators last week, putting more than 12,000 jobs at risk.

Wilko chief executive Mark Jackson said the retailer would “continue to progress discussions with interested parties” in the interim in the hopes of securing its future.

Potential buyers of the retailer need to pump up to £70m into firm, The Sunday Times reported, with at least £25m to £30m of the funds needed to get stock flowing through to Wilko’s stores and an additional £40m to pay off debts to Hilco.