Kwik Save may have axed 79 stores this week, but its problems are far from over. As management struggle to refinance, bills are still unpaid and shops are closing early as there's nothing left to sell.

The discount store, which was once a £1.3bn business, axed 800 of its 3,000 staff on Wednesday "to enable the business to succeed," said a Kwik Save statement.

But availability issues have escalated to such a level that even stores not destined for closure have barely any stock. Mystery shoppers for The Grocer described a Cheshire store that had been saved, as a "war zone". It was deserted but for two customers and only 5% of shelves had any stock for sale.

A worker from another saved store added: "We've got tinned fruit and alcohol and we don't know when we will get any new stock. The abuse we're getting from the public is absolutely incredible."

The Grocer revealed in April that Kwik Save was planning to shut 80 of its stores, but the speed of the closures appears to have stemmed from a failure to finalise a £21m cash boost as part of the rescue package secured by new Kwik Save chief executive Paul Niklas in April.

Niklas had promised to rebrand the estate with a new green and red logo and the strapline 'At your convenience'.

But in an email to a creditor on 18 May, buying director David Parry outlined a delay in securing three sources of cash - £6m from the sale of 28 freehold properties, a £10m banking facility and £5m of secured debt.

Parry said completion of these three projects was anticipated to be the end of May, but as The Grocer went to press, Kwik Save could not say whether any had been completed.

A finance source close to Kwik Save said failure to finalise the secured debt deal could be the end for the company. "Most suppliers have run out of patience. Without extra credit, the future is extremely bleak - the majority of suppliers will think very closely about sending out stock."

And he added: "With the sale of these 79 stores, Kwik Save does not have the critical mass it needs. Dropping down to 147 stores may make it easier for anyone sniffing around the company to step in - perhaps Iceland, which is looking to expand, or one of the discounters."

A Kwik Save store manager confirmed that Nisa Today, Middlewich, British Bakeries, Arla were no longer supplying Kwik Save. John Dennis had pulled its produce out of a number of stores, he added. "We have received emails telling us not to allow a company called Datalect to remove any computer equipment from stores. We have also received letters from electricity suppliers threatening to cut off supply due to non-payment of bills. Management has told us we are in dispute with them and store managers must not allow access to elecricity company staff."

These were worrying times for employees and creditors, said Patricia Godfrey, head of restructuring and ­insolvency at law firm Nabarro and president of R3. "In March the company seemed set for administration but was saved at the door of the court. It remains to be seen whether attempts will now be made to place the company in administration. Such a step could provide financial breathing space to explore some form of rescue."

Redundant staff are not due to be paid until 21 June. Kwik Save was unavailable for comment.