A deal has been struck for the homeowners of Poundland to take over the leases of as much as 71 Wilko shops.

The Pepco Group will rebrand the branches beneath the Poundland title, directors PwC mentioned.

In an announcement, Poundland mentioned it could give precedence to Wilko employees when hiring new workers for the shops.

It comes after a rescue deal involving the owner of HMV collapsed earlier this week, dashing hopes that each one of Wilko’s 400 branches might be saved.

PwC additionally warned on Monday night that 9,100 Wilko employees were set to be made redundant by early October.

Fellow low cost retailer B&M has already signed a deal to snap up 51 Wilko stores.

The 122 shops included within the agreements with Pepco and B&M make use of greater than 3,200 workers in whole.

Joint administrator Edward Williams mentioned: “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 proceed to interact with different retailers round any curiosity in different Wilko websites and are assured of finishing a sale of the model and mental property inside the coming days.”

Wilko – owned by the founding Wilkinson household for many years – collapsed into administration last month.