UP to 51 Wilko stores are to be saved after discount chain B&M agreed to take on the shops from the collapsed retailer. 

News of the purchase of 51 of the company’s 400 stores comes as talks over a larger rescue deal continue. 

B&M has not confirmed which Wilko shops it has bought, or how many jobs could be saved as a result of the deal.

Wilko’s Newton Abbot store is currently still trading. 

B&M said it will take on up to 51 stores in a deal worth £13m.

Wilko fell into administration in August as it struggled with sharp losses and a cash shortage.

It is understood that a deal tabled by HMV’s owner to buy up to 300 shops has stalled over funding issues.

Walk has faced strong competition from rivals such as Poundland, The Range and Home Bargains, as the high cost of living has pushed shoppers to seek out bargains.

Wilko’s stores remain open for now as it seeks a buyer, but more than 12,500 jobs were put at risk by the collapse.

The first redundancies - 269 jobs at Wilko's support centre in Worksop and 14 others at a subsidiary firm - started on Monday.