High street retailer Wilko has warned it is on the brink of collapse due to mounting cost pressures.
The homeware retailer, which has stores in Porthmadog, Pwllheli and Carmarthen, has filed a notice of intent (NOI) to appoint administrators – putting 12,000 jobs at risk across its 400 stores in the UK.
Wilko chief executive Mark Jackson said in a statement: "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. Unfortunately, with this in mind, today we’re having to take the difficult decision to file a NOI.
"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.
“We’re a £1.2 billion turnover business with strong presence on UK high streets through our 400 stores, online at wilko.com and through our great value Wilko own brand products, serving local communities with their everyday household and garden needs for over 90 years."
Reacting to the announcement, Dwyfor Meirionnydd politicians, Liz Saville Roberts MP and Mabon ap Gwynfor MS, said: "This announcement will cause real anxiety and uncertainty for staff, at a time when the cost-of-living crisis is causing an unprecedented squeeze on household finances.
"Our thoughts are first and foremost with all the staff likely to be affected by this devastating news, particularly workers at our local stores in Porthmadog and Pwllheli.
"We hope a speedy and positive outcome can be achieved, but our offices stand ready to support those affected by this decision."