The high street in Redruth has received a blow following the announcement one of its major national retailers is set to close on Sunday.

The Wilko in Fore Street is among the company’s 400 stores across the UK that is shutting after a rescue deal fell through.

PwC, which was appointed to oversee the insolvency last month, initially stated the branch would be the only store out of the family-owned businesses four outlets in Cornwall that was not earmarked to close and would “trade until further notice.” 

The billionaire owner of HMV, Doug Putman, hoped to keep up to 300 Wilko shops open, but his bid failed as rising costs complicated the deal.

Zelf Hussain, joint administrator, said: “Despite the significant and intensive efforts of both ourselves and Putman Investments - the remaining party interested in buying a significant part of the business as a going concern - a transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable.

“The dedication shown by all team members during this period has been hugely humbling and we are grateful for the patience and understanding they have shown.

"As with those who have already been given notice of redundancy, we will guide and support those team members impacted over the coming weeks through the redundancy claims process.

"We also continue to collaborate closely with relevant agencies and engage with any potential employers to help facilitate a quick return into new employment for those impacted.

“We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days.”

Wilko has struggled with strong competition from rival chains like B&M, Poundland, The Range and Home Bargains, as the high cost of living has pushed shoppers to seek out bargains.