The owner of HMV is edging closer to a deal to buy the majority of Wilko’s operations in a move that would salvage more than 8,000 jobs. 

Administrators PricewaterhouseCoopers (PwC) have been racing to find a buyer for the chain after it collapsed into administration three weeks ago. 

They are now consulting with Wilko’s major creditors on the terms of an agreement with Canadian billionaire Doug Putman, who bought HMV in 2017. 

A creditor told Sky News that Mr Putman wants to buy more than 300 of its 400 stores, saving between 8,000 and 9,000 jobs of a total workforce of 12,500. 

‘It’s still in the balance but it is beginning to look more positive that a deal can get done,’ the source said. 

Bosses from the GMB union met with administrators from PwC this morning to discuss Wilko’s future

A purchase by Mr Putman could still mean thousands of high street workers lose their jobs – depending upon further deals with other retailers to buy some of Wilko’s stores. 

Today PwC announced the first tranche of redundancies at the collapsed retailer, with hundreds of employees let go. 

Most staff working in the commercial trading team and IT, finance, legal and HR divisions for Wilko will have their ‘last day with the company’ on Monday. 

For warehouse staff, redundancies are due to start next week, the trade union said.

GMB said it remains hopeful that there is a ‘viable buyer on the table’ which could protect staff in stores and online, but that it must ‘continue to prepare for the worst’. 

PWC said ‘it is now clear that no viable offer structure put forward includes the group in its entirety’. Wilko has 12,500 employees in total. 

The announcement follows reports that a £90million offer from private equity firm M2 Capital had failed. 

The Anglo-Canadian firm had claimed it was raising money from US property tycoon Michael Flacks to rescue the retailer. 

But Mr Flacks told The Sun he was not interested in buying the embattled retailer. 

A source told the newspaper that M2 Capital’s bid had been too speculative to be taken seriously. 

Another bid from Canadian tycoon Doug Putman, who owns HMV and Toys R Us in Canada, is regarded as a more solid option.

He is bidding to save around half of Wilko’s 400 stores and 3,000 to 4,000 of its 12,000 workers.

M2 Capital had been given a deadline of 5pm last night to submit more information about its bid – on aspects such as funding, business strategy and legal representation.

Mr Flacks, 55, lives on an exclusive island in Miami, brushing shoulders with the likes of talk show host Oprah Winfrey and singer Shakira. 

He and his wife Debbie paid £19.2m in cash for a property on Fisher Island earlier this summer.

Wilko started clearing the shelves of its high street stores after collapsing into administration on August 11

Anglo-Canadian private equity fund M2 Capital made a bid to save the entirety of Wilko’s business, but this has reportedly fallen through 

He said in 2012 he had never found making money to be a challenge but added: ‘What I have found difficult is holding on to it.’ 

On Tuesday there was a glimmer of hope for staff after it emerged redundancies had been halted as administrators pored over rescue offers.

Wilko’s administrators have come under fire from unions and the stricken homeware retailer’s suitors after the rescue efforts dragged on into a third week. 

Jane Steer, joint administrator at PwC, said today: ‘It’s with great sadness that we announce these redundancies. 

‘We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.

Rival retailers Poundland, B&M, The Range, and Home Bargains were reportedly interested in buying out parts of Wilko’s business

‘We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work.

‘Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.

‘We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.’