British household goods company Wilko on Thursday announced it was at risk of collapse, impacting around 12,000 staff, as high inflation and interest rates hurt consumers and businesses.

The group, operating out of about 400 stores and online selling cleaning and garden products in addition to other small household items, announced its intention to appoint administrators.

This sees a distressed company call upon outside expertise to try and salvage parts of the business.

Announcing the decision to call in administrators, Wilko chief executive Mark Jackson said in a statement:

"We don't today have... (a rescue) offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we're faced with."