The prospect of the closure of a town centre Wilko store is "a further hit" to a Suffolk high street, says a community leader.
The retailer, which has stores in Ipswich, Bury St Edmunds, Lowestoft and Mildenhall and employs 12,000 workers across the country, shared that it has appointed administrators after failing to secure a rescue deal.
Councillor John Cook represents the Alexandra ward on Ipswich Borough Council which covers covers Upper Brook Street where Wilko is located in premises formerly occupied by C&A.
"News of Wilko's administration is not unexpected, but this is still a further hit to our high street.
"Hardest hit are the company's staff, and the best we can hope for is that the administrators can find a new operator for the business. Meanwhile, staff face an anxious time."
The retailer was founded as a hardware shop in Leicester in 1930, but quickly expanded across the UK.
It launched a turnaround plan earlier this year after its sales and footfall came under pressure amid the rising cost of living.
Wilko had agreed on a deal to borrow £40 million from restructuring specialist Hilco after posting significant losses.
The brand also hired advisers from PwC in a bid to find a buyer and secure fresh funding.
However, a few weeks ago Wilko Chief Executive Officer Mark Jackson shared that the company had “no choice” but to file for potential insolvency.
Wilko has not yet confirmed if stores will close.
Mark Cordell, chief executive of Bury St Edmunds Improvement District, said of the potential closure of the Risbygate Street store: "It's always disappointing to hear of any town centre trader struggling and particularly in this case where Wilko will employ many local people.
"Experience tells me it's best to wait and see whether some of the shops remain trading and if so hopefully ours will be one."
Nadine Houghton, national officer at the GMB union, said: "The 12,000 Wilko workers now facing potential redundancy will take little solace that with better management the situation that has befallen Wilko was, sadly, entirely avoidable.
"GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity."
Wilko sells everything from homewares and DIY goods to health and beauty supplies.
The Mildenhall shop can be found in St Andrew's Street while the Lowestoft store is located in London Road North.
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