The discount retailer Wilko has drafted in property advisers ahead of crunch talks with landlords about slashing rents across its store estate.

Sky News has learnt that the general merchandise chain is working with CBRE ahead of formal negotiations with shop-owners, which are expected to kick off in the coming weeks.

Sources said on Friday that Wilko was unlikely to permanently close a substantial number of its roughly-400 stores as part of a company voluntary arrangement (CVA) which is in the process of being finalised.

Instead, the restructuring is expected to focus on rent reductions amid a challenging period for the business.

Mark Jackson, Wilko’s chief executive, said: “We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.

“We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.

“We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer, providing customers a place to shop all their household and garden needs.”

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A Wilko spokesman declined to comment on prospective store closures or the appointment of CBRE.

Wilko previously announced that it had secured a £40m loan from Hilco UK, the specialist retail investor and lender which owns Homebase.

PricewaterhouseCoopers, which has been lined up to administer the CVA, also declined to comment.

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