It had been hoped a deal could be agreed that would see HMV owner Doug Putman take over Wilko, however Sky News reports that the rescue deal may be faltering.
In its wake, B&M could announce the purchase of around 50 Wilko shops as early as this morning.
Meanwhile, Sky News reports that Mr Putman is still in constructive talks with Wilko’s administrator about a slimmed-down deal for fewer stores.
In August it was confirmed by the Wilko’s chief executive officer Mark Jackoson that the company was filing a notice of intention.
He said: “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, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.
“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.
“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.”
Administrators confirmed last week that 269 people in the company’s Worksop support centre would be having their last day with the business.
Redundancies at the company’s Worksop and Newport warehouses are also due to start early this week.
The administrators did not confirm how many warehouse staff would lose their jobs, but around 1,296 people are thought to work there.
The GMB union said last week it had asked for redundancies to start with volunteers.
There are still hopes that the administrators, who work for PwC, will be able to hammer out a deal that could save thousands of jobs at Wilko stores across the country.