THE future of one of Barrow town centre's major chain stores is at risk after the company collapsed into administration.

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

Barrow's MP is among those who have lamented the announcement.

The development means another national chain could leave Barrow town centre if a buyer is not found for the company.

In recent years Debenhams, WHSmith, Marks & Spencer and Topshop have all closed their Barrow stores.

For now jobs will be safe and the store will remain open, the administrators have said.

The company was founded in Leicester by James Kemsey Wilkinson in 1930.

Barrow MP Simon Fell: "This is terrible news.

"I'm an unabashed fan of Wilkos, and their store is Barrow is great.

"As I understand it, there was considerable interest from potential buyers when their future was flagged as being at risk a few weeks back. I very much hope that one will be found by the administrator now.

"Obviously if anyone working in the Barrow branch has any questions or concerns then my team and I stand ready to help."  

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.