B&M has sealed a deal to buy up to 51 Wilko stores from administrators following the collapse of the rival discount chain.

Wilko fell into administration last month, with insolvency experts from PwC spending recent weeks seeking to hammer out a rescue deal for the historic retailer.

Administrators have held talks with a raft of suitors, including HMV owner Doug Putman, in order to save Wilko’s 400 stores and 12,500 jobs.

On Tuesday, B&M European Value Retail said it has agreed to acquire up to 51 Wilko sites from the administrators in a deal worth up to £13 million.

In a statement, B&M added: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances.

“An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”

The Mail: Wilko entering administration puts over 400 stores and more than 12,500 jobs at risk across the UK.Wilko entering administration puts over 400 stores and more than 12,500 jobs at risk across the UK. (Image: PA)

In August it was confirmed by the Wilko’s chief executive officer Mark Jackson that the company was filing a notice of intention.

He said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.

“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.

“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.

“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”

Administrators confirmed last week that 269 people in the company’s Worksop support centre would be having their last day with the business.

Redundancies at the company’s Worksop and Newport warehouses are also due to start early this week.

The administrators did not confirm how many warehouse staff would lose their jobs, but around 1,296 people are thought to work there.

The GMB union said last week it had asked for redundancies to start with volunteers.

There are still hopes that the administrators, who work for PwC, will be able to hammer out a deal that could save thousands of jobs at Wilko stores across the country.