Administrators for Wilko had been in discussions with the owner of HMV, Doug Putman, over a deal to buy around 200 of the chain’s stores.
But Mr Putman announced today (September 11) that his investment management firm Putnam Investments can “no longer continue in the purchase process for Wilko”.
The lack of a rescue deal would put 12,500 jobs at the retailer at risk, including those at its six stores in north London.
Wilko currently has branches at Tottenham Hale retail park; Wood Green Shopping City; Edmonton Green shopping centre; Capitol Way in Colindale; St George’s Shopping Centre, Harrow; and High Road, Wembley.
Sky News has reported that Wilko’s administrators at PwC are now in talks with Poundland over a potential deal to offload about 100 stores.
Other high street chains including The Range and Home Bargains have also reportedly signalled their interest over potentially buying the Wilko brand or stores.
Wilko has already announced a £13 million deal to sell 51 shops to B&M, although the rival discounter has not agreed to take on Wilko workers as part of the deal.
Administrators have already announced more than 1,600 redundancies at the retailer in recent weeks.
This week Wilko will shut 52 shops in a move which will lead to 1,016 redundancies.
It said 24 of its shops will close tomorrow (September 12, with a further 28 shops due to shut on Thursday (September 14).
Some reporting by PA.