Discount chain Wilko is in talks to secure a £30 million cash injection as cost pressures intensify in the run-up to Christmas.

The high street retailer employs around 16,000 and has over 400 shops, including Gloucester, Cheltenham and Stroud.

The Sunday Times reported that Wilko is in talks with alternative lenders for an emergency loan.

This comes as the struggling chain retailer was unable to agree to an extension of its revolving credit facility due to interest rate hikes, hence its decision to discuss plans with alternative lenders.

However, these alternative lenders usually extend credit at higher interest rates or in exchange for security over a firm's assets.

The news comes as Wilko eased some pressure this month by signing a 15-year agreement and leaseback deal on it Nottinghamshire-based distribution site with DHL.

The £48 million deal helped the company pay off its revolving credit facility.

Last month, Punchline reported how Wilko had increased its entry level hourly rate to £10 , which is 50p above the national living wage.

The pay increase came after a successful national ballot of team members by the GMB trade union.

The retailer also committed to an additional market forces temporary payment of 50p per hour for logistics team members to support recruitment and retention until the end of March 2023, its busiest trading period.

Wilko also announced it was temporarily increasing team member discount to 30 per cent until the end of January to help support colleagues during the cost-of-living crisis.