A town centre store could be under threat after Wilko revealed it is on the brink of going out of business.

The retailer, which currently has a shop on Deansgate in the town centre, announced today that it is planning to appoint administrators, putting 12,000 jobs across the country at risk.

Cllr Richard Silvester, council cabinet member for climate change and the environment, said he was disappointed by the announcement but stressed it was a national issue rather than one affecting only Bolton.

He said: “Obviously it’s not good news but this is a national decision it’s not down to Bolton Council.

“It’s very disappointing but it’s not just Bolton there are high streets up and down the country which are suffering with the economy.”

The Bolton News: Bolton town centre has had a hard few yearsBolton town centre has had a hard few years (Image: Newsquest)

The company runs around 400 outlets all over the UK, which could all be at risk now.

For Bolton, this comes amid a tough time for the high street with Marks and Spencer having closed only months ago, with a branch of Clinton Cards following soon after.

Fashion branch Tessuti then announced plans to close its Market Place branch last May.

Cllr Silverster, who represents the Queens Park and Central Ward which includes Deansagate Wilko said he had also been disturbed by the closing down of shopping centres in the country such as in nearby Wigan and further afield in Shrewsbury.

But he said he hoped Bolton Council’s plans could help revive the high street.

Cllr Silvester said: “The plan for the town centre is to get more housing in which we hope will rejuvenate it.

“We this will attract more small business as well because that will create more footfall for them and once smaller businesses are attracted to the town centre then that will hopefully bring in larger businesses as well.”

The news that Wilko is to go into administration has also sparked further calls to the government to act.

Bolton North parliamentary candidate Kirith Entwistle said: "This is another major blow to our town centre and our high street.

“I'd like to see more support and concrete plans from the government to stop our town centres from losing key major retailers like Wilko.

“We've seen today interest rates have gone up yet again, people are already struggling with the cost-of-living crisis, and now we're possibly seeing more job losses as well.

Wilko has said that no immediate closures have been planned and that business will continue running as normal.

But CEO Mark Jackson has admitted the company faces “mounting cash pressures.”

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. 

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“Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI.

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.”

He added: “That said, while we’ll continue to progress these indicative offers, without the surety of a recapitalisation being able to be completed within the necessary time frame and given the cash position, we’ve been left with no choice but to take this action.”