The struggling household products chain Wilko may have a chance to survive after receiving a £90 million offer from a private equity firm, M2 Capital.

M2 Capital, which has a track record of investing in distressed retail businesses, has submitted a proposal to PwC, the administrators of Wilko, that would protect the jobs of 12,500 staff and keep 400 stores open for at least two years.

The bid comes after Doug Putman, the Canadian entrepreneur who rescued HMV from administration, expressed his interest in taking over 350 Wilko stores and clearing the company’s £40 million debt to Hilco, the turnaround specialist that owns Homebase.

However, M2 Capital faces competition from other discount retailers, such as Poundland and B&M, which are eyeing parts of Wilko’s store network and may only select the most profitable locations.