Wilko is reportedly considering entering an insolvency proceeding called a company voluntary agreement (CVA) in a bid to cut costs.

A CVA is an insolvency mechanism which can permit retailers to renegotiate matters such as outlet rental costs with creditors like landlords or close sites to lower costs.

Wilko chief executive Mark Jackson told Bloomberg: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”

The reports follow Wilko’s sale of one of its distribution centres to transit company DPD for £48 million and its reported search for a £30 million debt facility amid plummeting sales figures.

Wilko also recently announced that it was cutting around 400 jobs as part of restructuring plans.

At the time, Jackson stated: “We’ve identified significant changes to the Wilko operating model to enable us to stabilise the business and then thrive again. This includes some proposed changes to our management structure at both our stores and head office.”

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