Retailer Wilko is on the brink of collapse after it sought court protection from its creditors while it seeks a rescue deal.

The £1.2bn-turnover business has been in trouble for months, exploring CVA options and potential funding. Investor Hilco is understood to have put in £45m already this year to keep the business going.

The company, known for its wide range of products and affordable prices, has been a staple in the lives of many British consumers for decades. However, the recent economic downturn and intense competition in the market have taken a heavy toll on the company’s financial stability.

But Wilko has now filed a notice of intention to appoint administrators, which gives a 10-day window to secure a deal while protected from action by other creditors. The business is being advised by PwC, while property agents CBRE had been brought on board to negotiate with landlords.

The privately-owned company said it had filed a “notice of intention” to appoint administrators after failing to find enough investment.

Wilko employs some 12,000 people across 400 UK stores and is well-known for its value furnishings and accessories.

Chief executive Mark Jackson said it would continue to talk with interested parties about options for the business.

“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business,” Wilko chief executive Mark Jackson said.