The closure of Dereham's Wilko branch is set to leave a hole in the town's high street.

All 400 branches of the retailer will shut down by early October with the "likely" loss of all 12,500 jobs after a rescue deal collapsed. 

Harry Clarke, Breckland councillor for Dereham’s Withburga ward and a GMB union member, called the announcement "very sad" but not unexpected.

Mr Clarke said: “Wilko has been part of our local fabric for many years - and has many long-serving staff who seem to have been featured and considered last in this process.

"My thoughts are with any staff and their families, and that all agencies will support any alternative employment.

“I do hope something can be salvaged - for them and this part of the High Street which thrives on those going to a number of shops - so this at present will be one less attraction.”

Eastern Daily Press: Harry Clarke, Breckland councillor for Dereham’s Withburga wardHarry Clarke, Breckland councillor for Dereham’s Withburga ward (Image: Newsquest)

But town mayor, Hugh King, said he was optimistic a new tenant would soon be found for the empty shop.

Mr King said: “It's always concerning when a company closes down, there will be many employees anxious about finding alternative employment and our thoughts go out to them”.

“Despite this closure and other recent closures, Dereham is a thriving and growing town, hopefully, it won't be long before the space created by Wilko closing can be taken up by another company creating local employment.”

Dencora, the firm that owns and manages the 17-unit East Dereham Shopping Centre, which includes the Wilko branch, declined to comment on the closure. 

52 Wilko shops will close this week - including in Lowestoft and Great Yarmouth.

Administrators for the firm had been in discussions with Doug Putman, who owns HMV, over a deal to buy around 200 Wilko shops - but these talks collapsed.

Eastern Daily Press: Hugh King, Mayor of DerehamHugh King, Mayor of Dereham (Image: Royal British Legion)

Both of Wilko’s distribution centres will close this Friday.