Wilko, one of the biggest discount retailer has gone into administration, with a loss of 12, 500 jobs after the failure of rescue bids. This follows recent high profile collapses of Sir Philip Green’s retail empire and department store chain Debenhams.

Mark Jackson, CEO said that” management and advisors had left no stone unturned when it came to preserving this incredible business”.

The chain filed a notice of intention to appoint administrators a week ago in an effort to keep creditors, including landlords and suppliers at bay while insolvency practitioners at PwC sought a last minute buyer or investor. The family owned chain started life as a single hardware store in Leicester in 1930, before capitalizing on the rise of DIY as a leisure activity in the following decades and expanding to 400 stores.

Wilko faced competition from smaller retailers  leaving it grappling with unimpressive sales.

Wilko fell to £36.7million loss before tax for the year to 29 January 2022, from £4.3million profit the year before. Despite its recent travails, Wilko paid its owners £2.25million in dividends in the year to the end of January last year and a further £750, 000 in February 2022.

Last year, Wilko borrowed £ 40 million from restricting specialist Hilco, which owns Homebase and Cat Kidson, as it deferred some payments to suppliers and landlords. It also sold and leased back its distribution centre in Nottinghamshire for £48 million to pay down some of its debt.