UK homewares retailer Wilko has warned that it is on the brink of collapse because of mounting cost pressures reports the BBC.

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.

The store in Harlow is situated in the Harvey Centre, opposite Tesco.

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

He said the company was left with “no choice but to take this action”, but hopes to find a solution as quickly as possible to “preserve the business”.

Wilko did not confirm in the announcement on Thursday whether or not any jobs would be affected.

It added some offers had been received but none of them provided enough cash within the time needed.

Rising interest rates, higher energy costs and squeezed consumer spending have all been weighing on retailers in recent months.

Shops including furniture retailer Made.com and clothing group Joules collapsed into administration but were both offered rescue deals by High Street giant Next.