Gordon Brothers explores rescue bid for Wilko

Investment firm Gordon Brothers is reportedly exploring a potential deal to rescue high street chain Wilko.

The offer could involve funding provided by Gordon Brothers to implement a restructuring that would see a significant number of store closures and job losses at Wilko.

One source told Sky News that Gordon Brothers had expressed an interest in partnering with other financial investors to inject about £20 million of equity, while it would provide around £50 million in debt financing.

However, other sources said that the chances of Gordon Brothers reaching a deal to rescue Wilko were "relatively low".

Last week, Wilko confirmed that it was filing a notice of intention to appoint administrators, putting approximately 12,000 jobs at risk.

Earlier this year, the retailer hired advisers from PwC in an effort to find a buyer and secure fresh funding to keep the business trading amid "mounting cash pressures".

PwC is now understood to be seeking binding offers within days, with the company close to running out of cash.

If appointed as administrator, PwC will run a further sale process before embarking on a liquidation of Wilko's assets if no deal is advancing.