Wilko has called in advisers as the company explores cost-cutting and restructuring options in an effort to improve its balance sheet.

The high street retailer, which includes a toy department among both its in store and online offerings, is reportedly seeking cost-cutting and restructuring options right across the business. Advisers from Teneo have been engaged to assess options for the retailer.

Factors including rising inflation, delivery delays, supply challenges and store closures during the Queen’s funeral have all combined to affect Wilko’s business.

Wilko has recently deferred payments to suppliers to protect its cash flow; the company has informed suppliers that bills due to be paid between 11th September and 8th October would be made in the following month.

Wilko has also altered its terms so that suppliers will be paid in a minimum of 60 days, saying that the changes reflect a shift in the wider retail industry standard from monthly payments to every six weeks.

Wilko brought in experts from Interpath Advisory to refinance its £37.5m revolving credit facility earlier this year and has closed 15 stores so far this year.

This was a result of failing to agree more favourable lease terms with existing landlords, and a fresh approach to store locations and formats. At this time, Wilko’s chief executive, Jerome Saint-Marc, commented: “We’ll continue to pull together to make our business better, to secure the future of over 16,000 team members. We apologise to those communities where stores are closing.”