Wilko’s administrators have been urged to accept a rescue deal for the ailing value chain after receiving a second last-minute bid.
M2 Capital, an Anglo-Canadian restructuring specialist, is understood to have put forward a bid worth £90m that would keep the entire retailer trading, The Guardian reported.
It comes days after HMV owner Doug Putman made a surprise last-minute offer that would see 350 out of the 400 stores remain open and the £40m worth of debts owed to Hilco paid off.
Putman submitted an improved proposal on Friday after administrators PwC dismissed his earlier bids.
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According to Sky News, the Canadian tycoon has approached several debt providers including Gordon Brothers and Hilco to help finance his offer.
City sources told the publication that a rescue deal with Putman was “unlikely” but that it remained under discussion with PwC, with a decision likely to be made at the start of next week.
If his bid is unsuccessful, Wilko will be broken up with 150 stores sold to rivals Poundland and B&M.
Fellow value retailer The Range is understood to be in pole position to acquire Wilko’s brand and online operations.
Wilko plunged into administration at the start of the month after teetering on the brink of collapse for several months.
Former Wilko managing director Gordon Brown accused the chain’s owner Lisa Wilkinson of pushing the retailer to the edge by scrapping its tried-and-tested low price strategy.
Brown, who led the business between 1992 and 2007, told The Mail on Sunday: “Wilko was a convenience store where you went to buy bits and pieces for your house for a low price.”
He said the management team under Wilkinson “got into a situation where they were not following their successful model of low price, low cost”.
“They paid consultants who helped them bring about a new format for stores, but they were less aggressive on pricing and their approach on the shop floor.”
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