Administrators for the Wilko chain say more than 250 jobs are set to go after failing to strike a deal to sell the business as a job lot.
PwC said some 269 roles were being lost at its head office in Worksop, Notts, with further cuts planned at distribution centres in Worksop and Newport, South Wales.
PwC said that on top of that no viable offers had been made for a Wilko subsidiary called Kin, which will close with the loss of 14 jobs on Monday.
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Despite the news, all of Wilko’s 400 stores are still trading. In total the business employs 12,500 people.
Joint administrator Jane Steer said: “It’s with great sadness that we announce these redundancies.
“We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.
“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work.
“Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.
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“We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.
“Advice and assistance will also be available from Job Centre Plus and other agencies.”
PwC said they had considered “multiple varied bids and expressions of interest” for the group.
In a statement the administrators said: “While discussions continue with those interested in buying parts of the business, it is now clear that no viable offer structure put forward includes the group in its entirety.
“The administration’s dedicated employee team will continue to work with HR and payroll to provide support to team members during this deeply unsettling time, including assisting in the statutory redundancy claims process with the Redundancy Payments Service.
“A dedicated helpline remains in place to ensure employees can address queries they have regarding the process, and company support systems with access to further advice and resources remain active.
“The administrators will continue to liaise closely with the government, agencies, unions and large employers to help create avenues to further employment opportunities for affected staff.”
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The GMB union, which represents some Wilko workers, said: “As a result of this unwelcome development, the redundancy processes which were paused two days ago are set to restart almost instantly.”
The union said that it was still trying to save the distribution centres, but “we do not have high hopes of doing so”.
On Wednesday, the union had told its 3,000 members who work for Wilko that M2 Capital, which was believed to have offered around £90 million for the business, had until 5pm to submit the correct paperwork.
M2 was understood to have said that it would retain all the jobs for two years.
GMB said that it is “hopeful” of a viable bid for Wilko’s stores and online business.
It added: “Despite leaving no stone unturned, we simply could not reverse the years of mismanagement under the recent regime and cannot ignore the incompetence which has cost you your jobs.”