Kwik Save has been given another week to allow its management to put together a rescue package.

The troubled discount retailer was granted a second extension by the High Court yesterday after securing a court adjournment last week to allow directors to agree a re-financing package.

However, according to retail union Usdaw, Kwik Save is struggling to pay staff wages. The union was told by Kwik Save earlier this week that it would not be paying staff or making redundancy payments, but has since been told that its members will receive some payment.

“Usdaw has told Kwik Save this is a totally unacceptable way to treat loyal and hard working staff who have bills to pay,” said Usdaw national officer Joanne McGuinness. “But they have told us that they hope to pull together some finance to pay their staff at least some of the money they are owed as they continue to try to refinance the company.”

She added: “Our members have endured weeks of uncertainty and this further extension granted by the court will only add to their concerns about long-term job security which remains their main concern.”

Earlier this month Kwik Save closed 79 stores but last week said it was planning to reopen 20 sites. However, a further 22 closures have since been announced, bringing the total number of store closures to 81.