Wilko job losses expected after HMV owner's rescue deal collapses

High Street chain Wilko is set to close after a rescue bid for the struggling firm collapsed.

Around 12,000 jobs have been left in uncertainty as a result of the development, including those in Clydebank and Irvine.

The billionaire owner of HMV, Doug Putman, had planned to keep up to 200 Wilko shops open around the UK as part of a potential deal.

However, this bid has now collapsed as a result of rising costs following make-or-break talks over the weekend, it is understood.

Some of Wilko’s remaining stores may be sold to rival retailers, such as Poundland or The Range.

Last week, PwC, appointed to oversee the insolvency last month, said it remains in talks with parties interested in buying the remaining parts of the business.

It is expected that administrators will announce the details of job losses and store closures in the coming days.

In a statement to The Sun newspaper, Mr Putman said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.”

Sky News has reported that administrators from PwC are now in talks with Poundland over a potential deal to offload about 100 stores.