The company that took over the Laura Ashley brand from administration could make a move to buy stricken high street retailer Wilko.

Gordon Brothers made the move for the historic Laura Ashley brand as the beloved Powys company struggled in administration during the Covid lockdown in 2020.

The Newtown factories were closed in the wake of the deal, however, as they did not form part of the takeover of the beloved mid Wales brand.

Now Gordon Brothers has emerged as a potential buyer for Wilko's, which filed notice of intent to appoint administrators last week - a move which could prepare it for a potential insolvency.

The troubled retailer has suspended home deliveries as it races for a rescue deal to avoid collapse.

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The administration process provided the group with 10 working days to find a buyer for all or part of the business as it seeks to avoid going bust.

Wilko is looking for a potential buyer and is understood to have held talks with interested parties.

Gordon Brothers is reported to be among those to have held discussions over a possible to deal to secure Wilko’s future.

Earlier this year, the retailer – which has around 400 shops and 12,000 employees – hired advisers from PwC in a bid to find a buyer to secure fresh funding to keep the firm trading.

Last year, Wilko agreed a deal to borrow £40 million from restructuring specialist Hilco after posting significant losses.

Last Thursday, Wilko said it had “no choice” but to file for the potential insolvency but would continue a possible rescue takeover.

Announcing the insolvency preparations, chief executive Mark Jackson 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.”