The collapse of Wilko, which could impact as many as 12,000 jobs, has been described by the workers’ union GMB as being “entirely avoidable”.

The retailer is drifting towards insolvency as potential rescue deals have reportedly faltered.

"GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity,” said Nadine Houghton, GMB national officer.

Houghton was critical of Wilko’s money management, noting that as late as last year, £3 million was taken out of the business by the Wilkinson family even when it was struggling, all while “GMB members had remained loyal and committed to Wilko”, accepting pay cuts and cuts to terms and conditions to help the business stay afloat.

According to Sky News, Gordon Brothers, an investor group which also owns the Laura Ashley brand, was considering a deal for the flagging discount retailer.

One source told the news service that Gordon Brothers was examining the prospect of teaming up with other investors for a rescue deal in which it would provide $50 million in debt financing for Wilko, while its partners would invest around £20 million.

For reasons unknown, such an arrangement did not come to fruition, with a source telling Sky News on Tuesday that the potential for Gordon Brothers to organise such a rescue deal was “relatively low”.

Wilko is now understood to be lining up PricewaterhouseCoopers (PwC), which has been working with Wilko in recent months to try and find a buyer, as its administrator.

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