Private equity giant Gordon Brothers is said to be in talks about a potential rescue bid for stricken retailer Wilko.
Sources told Sky News that an offer from the Laura Ashley-owner could see the firm inject funding into the retail chain to support a restructuring that would see a significant number of store closures and job losses.
They said Gordon Brothers had expressed interest in partnering with other financial backers to inject £20m of equity and provide £50m in debt financing.
However, an insider said the chances of Gordon Brothers reaching a rescue deal in time were “relatively low”.
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Sky News reported that the project is being overseen by former Next and Mothercare boss Mark Newton-Jones, who was appointed to head up Gordon Brothers’ European operations back in February.
Turnaround investors Alteri and Opcapita are also said to be exploring offers for the retailer in recent weeks but are unlikely to secure a deal ahead of a formal insolvency process.
The family-owned chain filed a notice of intention to appoint administrators last week, putting more than 12,000 jobs at risk.
Wilko chief executive Mark Jackson said the retailer would “continue to progress discussions with interested parties” in the interim in the hopes of securing its future.
Potential buyers of the retailer need to pump up to £70m into firm, The Sunday Times reported, with at least £25m to £30m of the funds needed to get stock flowing through to Wilko’s stores and an additional £40m to pay off debts to Hilco.
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