THE closure of Wilko stores in the borough and the loss of jobs would be a body-blow to St Helens and Earlestown, senior politicians have said.

The budget retailer has entered administration after failing to secure a rescue deal, putting around 12,500 jobs in jeopardy.

The chain, which runs more than 400 stores across the UK, told staff on Thursday that it has hired administrators from PwC to oversee the process.

Wilko will continue to trade from all its stores “without any immediate redundancies”, the administrators have said.

Politicians in St Helens say they are shops that many people rely on. The St Helens store - on the former Co-op building site - is one of the biggest shops in the town centre.

Marie Rimmer, the MP for St Helens South and Whiston, said: "This is terrible news for Wilko employees and their families here in St Helens.

"It is one of our biggest shops that many local residents rely on.

"The Government needs to do what it can to help employees get through this. I hope a buyer can be found to save as many jobs as possible.

"Shops on the high street have been left to struggle for far too long.

"The Government needs to get a grip before even more shops are forced to close their doors for the final time."

Messages of support have been sent for staff who are facing an uncertain time.

Councillor Kate Groucutt, St Helens Borough Council's cabinet member for economy, business and skills, said: "As a major national retailer, the loss of Wilko would be a huge loss to our two town centres after many years of trading here in our borough and we hope a buyer can be found.

"My thoughts are with the staff who are now faced with redundancy - I know this will be a worrying time for them.

"Connections have been made with our Ways to Work team - who have a wealth of experience when dealing with unfortunate situations like this - and are ready to assist staff back into employment or training opportunities at the earliest opportunity.”

Responding to the news that Wilko has gone into administration, Conor McGinn MP said: “This is bad news for the hardworking staff in our local Wilko stores and for our town economy in St Helens and Earlestown.

"Like many local people, I regularly shop at Wilko and feel sad that it is in such trouble, particularly for the always helpful staff.

"I am in touch with trade unions and I urge Government Ministers to intervene and support efforts to find a new buyer and ensure this iconic business can continue to trade.”

Wilko chief executive Mark Jackson said the company had received “a significant level of interest” but was “left with no choice but to take this unfortunate action” after being unable to close a deal in time.

In a letter, he said: “Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan, given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.

“We left no stone unturned when it came to preserving this incredible business but must concede that, with regret, we’ve no choice but to take the difficult decision to enter into administration.

“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”

The retailer was founded as a hardware shop in Leicester in 1930, but quickly expanded across the UK, growing into other markets such as garden products and stationery.

Wilko has grown to currently run around 400 stores and employ 12,500 workers.

It launched a turnaround plan earlier this year after its sales and shopper footfall came under pressure as consumer budgets were hammered by the rising cost of living.

Wilko said it saw “real progress” in many areas of its plan and made significant cost savings but was unable to improve its finances quickly enough to avoid insolvency.

Administrators said the retailer has suffered “increasing cashflow pressure and a deterioration in trading” after sales were impacted by the pandemic and cost-of-living crisis

They will now seek out potential buyers for the firm’s store estate and its brand.

Zelf Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well-loved, family business that has been on the high street for over 90 years has had to go into administration today.

“As administrators, we will continue to engage with parties who may be interested in acquiring all or part of the business.

“Stores will continue to trade as normal for the time being and staff will continue to be paid.”

The company started looking for a takeover or investment at the start of the year, with advisers from PwC overseeing the process.

It is understood Wilko held talks with private equity firms Gordon Brothers, which owns Laura Ashley, and Alteri as it sought funding to keep it afloat, but was unable to strike a deal.

Nadine Houghton, national officer at the GMB union, said: “The 12,000 Wilko workers now facing potential redundancy will take little solace that, with better management, the situation that has befallen Wilko was, sadly, entirely avoidable.

“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.”