In a statement the GMB Union, which represents 3000 of Wilko’s 12,000-strong workforce, said they had been informed by the company’s administrators, PwC, that “there is no longer any prospect that the majority of the business will be saved”.

“The majority of Wilko stores are to close within weeks after a purchase of the discount retailer fell through,” the union said.

“This means redundancies for staff in store and at call centres will begin during the coming week.”

PwC, which was appointed administrator on August 10, denied claims around the timing of store closures, but admitted that sales talks with businesses interested in buying the entire chain had failed and that stores would close and jobs would go.

In a statement it said: “Contrary to speculation, there are currently no plans to close any stores next week.

“While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole Group. Sadly, it is therefore likely that there will be redundancies and store closures in the future.”

The collapse of Wilko is the latest in a string of UK retail closures with department store chain Debenhams folding eariler this year, following in the wake of Mothercare, Evans and Topshop.

Wilko, a discount hardware, home and office supplies chain, began life in 1930 as Wilkinson Hardware with a single store in Leicester.

It pioneered self-service hardware retailing, and diversified into other home products in the 1980s.

In 2008 it expanded into Asia and rebranded from Wilkinsons to Wilko in 2012.

But it failed to keep pace with change, and a lack of cash and poor product availability since the pandemic drove customers away.

Competition from other discount retailers like B & M, Poundland and Home Bargains also hurt the business.

“It’s a great shame. I think the big problem is they are in the town centre and people go to places like Home Bargains where you often get free parking so I think they have fallen a bit behind the times in terms of their location,” Wilko customer Tony Richards told The Basingstoke Gazette.

Bloomberg Intelligence retail analyst Charles Allen told Retail Gazette: “Many Wilko locations are still in traditional town centres or shopping centres nearby, such locations have become progressively less attractive as other retailers have either closed or relocated to retail parks…which are more convenient for many consumers, especially when they are buying bulky goods.”

Retail experts said it also expanded its product range into many areas it had no authority in, leading to a slow turnover of stock.

Poundland and B & M, as well as Laura Ashley owner Gordon Brothers, had been rumoured to be among the businesses considering buying Wilko.

The union said that while some stores may still be bought, significant job losses are now expected.

Andy Prendergast, GMB National Secretary, said that millions of pounds in dividends had been paid to shareholders even as the business was close to collapse.

“GMB will not forget the incompetence that has led to this collapse and will we not forget the dividends paid to the millionaires who gambled your jobs on their whims.”