A high street store in Redruth that is earmarked to close on Sunday is set to become a Poundland.

The Pepco Group, the owner of Poundland, has agreed to take on the lease of the Wilko store in Fore Street after the family-business went into administration.

The Wilko in Redruth is one of 71 Wilko branches across the country that is expected to be converted to the Poundland brand.

Poundland said in a statement that Wilko staff would have priority when applying for new jobs at their discount shops.

Wilko fell into administration in August as it struggled with sharp losses and a cash shortage. 

It was founded in 1930 and by the 1990s became one of Britain's fastest-growing retailers.

But the discount chain has faced strong competition from competitors including B&M, Poundland and Home Bargains, as the high cost of living has pushed shoppers to seek out bargains.

A spokesman for Poundland said the stores in the deal were mostly in locations where it currently has a "limited presence".

He added: "The lease assignments are expected to be completed in early Autumn, enabling these stores to join Poundland's existing 800-plus UK estate and open in the important fourth calendar quarter of 2023."

Poundland managing director Barry Williams said: "In the coming weeks we will work quickly with landlords so we can open these stores as Poundlands with the new ranges that have been pivotal to our recent development.

"And once that process is complete, we will ensure a significant number of the Wilko colleagues will join our Poundland team."

He added: "The Wilko stores will accelerate our existing transformation programme, offering amazing value for consumers, providing growth opportunities for suppliers and supporting employment in the high streets, shopping centres and retail parks customers love."

Administrators said that they were confident the Poundland deal would "create a platform for future employment opportunities" for Wilko employees.

The Joint Administrators stated they have entered into an agreement to provide Pepco Group, with the option to acquire up to 71 sites to be opened as Poundland stores, after the administration trading period concludes at those sites.

Joint administrator Edward Williams said: "Alongside the previously announced agreement with B&M, we're confident this sale will create a platform for future employment opportunities for people including current Wilko team members at up to 122 locations.

"We will continue to engage with other retailers around any interest in other Wilko sites and are confident of completing a sale of the brand and intellectual property within the coming days."