Wilko deal to buy firm and save jobs falls through

A deal to buy Wilko, which claimed to guarantee jobs for the next two years, has fallen through after a bidder failed to file paperwork in time.

Private equity firm M2 Capital said it made a £90m bid for Wilko but was unable to provide proof of funding.

The process of making redundancies at the retailer will now resume.

But it is understood that PwC, which is overseeing the sale of Wilko, is still in talks with HMV owner Doug Putman about a deal.

Wilko fell into administration in August putting 12,500 jobs at risk across 400 shops. It also has two distribution centres and a head office.

M2 Capital claimed at the weekend that it would retain all employees' roles for two years.

Job cuts at the collapsed retail chain were suspended while the M2 Capital bid, which was submitted last week, was considered.