The future of Wilko, the family-owned homewares and hardware retailer, is in doubt as it faces administration after failing to secure a rescue deal. The company, which has more than 400 stores and 12,000 employees in the UK, confirmed last week that it had filed a notice of intention to appoint administrators, giving it 10 working days to find a buyer or new funding.

Wilko’s chief executive officer, Mark Jackson, said that the company had received “a significant level of interest” from potential suitors, but none of them had offered enough liquidity to keep the business afloat. He said that the company had no choice but to take the “difficult decision” to enter administration.

As a result of the looming insolvency, Wilko has suspended its home delivery service, leaving customers unable to order online. The company’s website said on Wednesday that the service was “currently unavailable”, and advised shoppers to use its click-and-collect service or visit its stores instead.

Wilko, which was founded in 1930 by JK Wilkinson in Leicester, has been struggling with rising costs, supply chain disruptions and tough competition from online rivals. The company had been trying to implement a turnaround plan, which involved borrowing £40 million from restructuring specialist Hilco, cutting jobs, selling off a distribution centre and seeking rent reductions from landlords through a company voluntary arrangement (CVA).

However, these measures were not enough to restore confidence and stabilise the business, according to Jackson. He said that the company needed to make “significant changes” to the way it operated, but had run out of time and options.

Wilko is one of the largest privately owned retailers in Britain, and its collapse would be a major blow to the high street, which has already seen many casualties in recent years. The company is understood to have held talks with several interested parties, including Gordon Brothers, Alteri Investors and Opcapita, but none of them have made a formal offer yet.

The administrators from PricewaterhouseCoopers (PwC) are expected to continue to seek a buyer for all or part of the business, or otherwise liquidate its assets. Wilko declined to comment on Thursday morning.

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