Wilko is racing to secure fresh funding as it prepares to push ahead with its restructuring plan.
The struggling value retailer is working with advisers as it strives to raise tens of millions in additional equity.
It comes as Wilko works with property firm CBRE to pull together plans to undertake a CVA in order to reduce store rents.
The retailer and its advisers at PwC have approached a number of potential specialist distress investors this week for funds to support its plans, according to Sky News.
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It is thought that the new funding would result in the founding Wilkinson family diluting their shareholding.
Wilko secured a £40m asset-based credit facility from Hilco UK back in January, with the retailer’s intellectual property, including its logo, marketing slogans and various own-label product names, given over as security.
Despite the cash injection, the retailer has struggled to keep its stores fully stocked as credit insurance was withdrawn late last year.
Wilko chief executive Mark Jackson told the publication: “As directors, we continue to work through all the options available to the business, and in addition to the work we’re doing to streamline costs and transform the way we operate, we’re also now actively exploring opportunities to recapitalise the business and provide a stable platform to activate the next phase of the recovery, with a plan to maximise the significant opportunities that exist to re-establish a profitable Wilko.”
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