Wilko rival B&M saves up to 51 stores from closure

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Discount chain B&M has agreed to buy dozens of shops from the collapsed retailer Wilko, as talks over a bigger rescue deal hang in the balance.

B&M said on Tuesday it will buy up to 51 Wilko stores from administrators in a deal worth £13m.

Wilko, which has 400 shops across the UK, fell into administration in August as it struggled to pay debts.

Reports suggest a deal tabled by HMV's owner to buy up to 300 shops has also stalled over issues with suppliers.

Wilko was founded in 1930 and by the 1990s became one of Britain's fastest-growing retailers.

Well known for its affordable everyday items, it had been struggling with sharp losses and a cash shortage.

The company has faced strong competition from other rival chains like Poundland, The Range and Home Bargains, as the high cost of living has pushed shoppers to seek out bargains.

The first redundancies at the chain - 269 jobs at its support centre in Worksop and 14 others at a subsidiary firm - started on Monday.