Potential Wilko rescue deal ‘could take weeks’ to complete with future of 400 stores and 12,500 jobs hanging in the balance
- Several companies including B&M and Home Bargains are said to be interested
Any potential deal to rescue high street chain Wilko could take ‘weeks’ to complete, it was claimed on Saturday, as 400 stores and 12,500 jobs hang in the balance.
Administrators for Wilko PwC announced it had been appointed by the firm earlier this month after it failed to secure additional backing.
It is understood that several bids for the brand have already been placed, with trade union GMB said meant there was ‘genuine grounds for hope’ for staff.
But these deals are still in the early stages and could take ‘weeks’ to sift through, MailOnline understands.
The collapsed chain has been holding 50 percent off sales at stores across the country as it tries to shift stock ahead of a possible total closure.
Administrators for Wilko PwC announced it had been appointed by the firm earlier this month
400 stores and 12,500 jobs are at risk if a buyer cannot be found to take on the business
B&M, Poundland and Benson for Beds-owner Alteri are all rumoured to have thrown their hat into the ring with bids to buy Wilko.
Bosses at the Range and Home Bargains are also said to have expressed interest.
Andy Prendergast, national secretary at the GMB union, said: ‘We can confirm there have been expressions of interest from organisations who are considering taking over at least some parts of the business.
‘These are still at an early stage, but this means there are genuine grounds for hope. While this process continues, staff will continue to be paid and kept on.’
Sources said that while PwC had originally hoped to announce a possible takeover on Monday, this has now been pushed back to at least the end of next week, with the possibility of it being delayed even further.
Potential bidders for the business are not under any requirements to keep the Wilko brand, so could opt to merge stores into their existing portfolio.
Wilko was founded in 1930 as a hardware shop in Leicester by JK Wilkinson, and for decades was known as Wilkinson before taking on the abbreviated form in the early 2010s.
Over the years the family-owned company expanded its range to include DIY products, gardening wares and general home goods. But it has faced stiff competition from a growing number of cut-price competitors including B&M, The Range and Home Bargains.
B&M is among the businesses thought to have submitted an offer to PwC
Wilko hsa faced stiff competition from budget stores such as Poundland
It is thought would-be saviours have tabled offers for 40 to 50 Wilko stores
One of the bids could save up to 300 Wilko stores (Pictured: The Range, whose bosses are said to be interested in the company)
It is thought would-be saviours have tabled offers for 40 to 50 Wilko stores, though one rescue offer, if accepted, could see as many as 300 stores retained.
But the order of events is reminiscent of Woolworths, which disappeared from High Street in 2008 at the height of the credit crunch with the loss of 27,000 jobs and 800 stores.
Chief executive Mark Jackson said last week the company had done all it could to weather uncertain economic circumstances – but that ‘time has run out’.
In a letter to staff, he said: ‘We’ve all fought hard to keep this incredible business intact but must concede that time has run out, and now we must do what’s best to preserve as many jobs as possible, for as long as is possible.’
Zelf Hussain, Joint Administrator and PwC partner, said as Wilko’s fall into administration was announced: ‘It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.
‘Many high street retailers are facing a number of well-documented challenges and wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.
‘Wilko has been a staple of many British high streets for decades. We know that the appointment of Administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.
‘As Administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.’
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