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Wilko could be saved from closure with potential rescue bid lined up

Around 12,000 jobs are at risk

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As homeware and hardware retailer Wilko is on the brink of collapse, a potential rescue bid could save the chain from complete closure.

The CEO of the homeware and hardware retailer said it is expected to enter insolvency after failing to secure a takeover to help the business with ‘mounting cash pressures’.

Wilko filed a notice of intention to appoint administrators at the High Court last Thursday, August 3rd. 

A notice of intention protects businesses from creditors for 10 days as the company attempts to secure its finances.

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Around 12,000 jobs could be at risk with Wilko’s 400 stores across the UK facing possible closure.

However, the chain could be saved by a potential rescue bid from a specialist investor.

Gordon Brothers, which specialises in struggling retailers and has backed British high street names including Laura Ashley, are in talks with Wilko’s advisers about making a possible deal.

If a deal was to go ahead, it could still involve a large number of store closures and job losses. However, an insider source has said that the chances of the deal being made were ‘relatively low’.

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One source reportedly said the firm had expressed an interest in partnering with other financial investors to inject about £20m in equity, while it would provide around £50m in debt financing.

The project is being overseen by Mark Newton-Jones — former executive for Next, Very Group and Mothercare — who was appointed to lead Gordon Brothers’ European operations earlier this year.

Alteri and Opcapita, two other specialist turnaround investors, have also been examining offers for Wilko in recent weeks but are regarded as unlikely to do so ahead of an insolvency process.

PriceWaterHouseCoopers (PwC) — advisors for the family-owned retailer — is understood to be seeking binding offers within days, with the company close to running out of cash.

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Earlier this year Wilko’s hired advisers from PwC in a bid to find a buyer iso they could secure fresh funding to try to keep the firm trading.

If appointed as administrators, PwC, will run a further sale process before beginning a liquidation of Wilko’s assets — if no deals can be arranged.

This year Hilco, owner of Homebase, lent Wilko £40million to try to salvage the company’s future. The firm also recently amended the terms of their agreement to continue to help the struggling chain.

Over the past year, Wilko has closed down 14 different stores across the UK.

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The stores that have been recently shut down are Bournemouth, Stockton, The Fort Birmingham, Shipley, Scunthorpe, Narborough Road in Leicester, Grantham, Redditch, Rotherham, Skegness, Llanelli, Merthyr Tydfil, Cleethorpes and Woolwich.

As the news was announced last week Mark Jackson, Wilko chief executive, said: “We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.

“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”

Wilko has been owned by the Wilkinson family, which established the business, since 1930.

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Sunak announces HS2 leg to Manchester to be scrapped

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Rishi Sunak announces at the Tory party conference that the Birmingham to Manchester leg of the HS2 is to be scrapped.

The Prime Minister made a key speech at the conference held in Manchester city centre where he confirmed the rail line will stop in Manchester but from Birmingham it will switch onto using the existing West Coast Mainline track.

This means the high speed route, to connect the north with the south, will no longer exist, effectively confirming days of speculation.

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After being introduced by his wife, Akshata Murty, as a ‘wonderful father, my best friend, your prime minister’, Mr Sunak thanked both his wife and the audience.

Speaking live from Manchester, Mr Sunak called HS2 the ‘ultimate example of the old consensus’.

The Prime Minister then said he’s cancelling ‘the rest of the HS2 project’ – which means everything outside the London to Birmingham leg, and is currently under construction.

He then said he ‘will reinvest every single penny’ saved from HS2 – £36 billion pounds – into hundreds of new transport projects in the North and in the Midlands, as well as across the country.

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He went on to say that the north would benefit from the new projects rather than HS2, saying he ‘challenges anyone to tell me with a straight face that all of that isn’t what the north really needs’.

Mr Sunak said: “With our new Network North, you will be able to get from Manchester to the new station in Bradford in 30 minutes, Sheffield in 42 minutes, and to Hull in 84 minutes on a fully, electrified line.”

He continued: “So those who wish to disagree with me, I respect that. But they should have the honesty to admit that they would now be cancelling the hundreds of alternative projects right across the country that people will benefit from instead.

“I think our plan is simply a better long term investment of £36 billion pounds of taxpayers money.” 

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He also said that he will keep single bus fares capped at £2 ‘across the whole country’.

The prime minister added: “I say, to those who backed the project in the first place, the facts have changed. And the right thing to do when the facts change, is to have the courage to change direction.

The anticipated announcement came after defence secretary Grant Shapps suggested a change in HS2 plans was thanks to fewer people travelling into work and instead choosing to work from home, following the coronavirus pandemic.

Greater Manchester Mayor Andy Burnham has labelled the, now confirmed, decision as ‘disgraceful’.

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Gary Neville welcomes new £400m five-star hotel and residences to Manchester

The world famous W Hotel and W Residences will open in 2027

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Exciting first look images are revealed for the hugely anticipated £400 million five-star hotel and residency set to open in 2027.

Gary Neville’s Relentless Developments has announced the St Michael’s development, currently being built between Deansgate and Albert Square, will be bringing with it a world famous hotel brand

The St Michael’s plot, soon to be home to luxury W Hotels and W Residences, will be the first outside London and one of 20 around the world, in a major deal with Marriott International. 

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The glossy new arrival will see hotel-inspired living offered at St Michael’s 217 apartments, offering buyers the opportunity to purchase a permanent residence within Manchester’s most exclusive postcode. 

The iconic 41-storey tower will boast a 162-room hotel, with the tower also housing W Residences, a complex of 217 apartments which will be offered for sale from November, with occupancy also in 2027.

The live-in residences will also boast the facilities of the W Hotels, including 24-hour concierge (W’s whenever/wherever service), round-the-clock in-residence dining, laundry and dry cleaning, as well as the hotel’s gyms and other features.

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“W Hotel and W Residences are going to put the distinctive 41-storey tower that is No.2 St Michael’s on the global map,” said Neville, Director, Relentless Developments.

“There is no better home for W Hotel in the North of England than Manchester.

This is a bold city which continues to defy expectations and which embodies the same values of originality and passion that have made the W Hotel experience world-renowned. 

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“Situated alongside this, W Residences Manchester will be immersive, design-forward homes that will set a new standard in hotel-inspired living and massively raise the bar for city-centre home ownership.” 

“I’d like to thank Marriott International and our developer partner, Salboy, for seeing the potential in this scheme and remaining committed to our vision,” he added.

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Two Greater Manchester officers nominated for Pride of Britain Awards for acts of bravery

Incredible stories of bravery

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The two Police Constables shared their stories of bravery on TV this week, resulting in their Pride Of Britain This Morning Emergency Services Award nominations.

PC Amy Greenwood based in Bury and PC Paul Spinks from Trafford, went above and beyond their call of duty.

PC Greenwood’s nomination is for her actions during an incident on Tuesday, December 21st, 2021. While on response, she was called to an incident in the early hours, which was initially believed to be a domestic incident.

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Upon arrival things were not as they seemed when officers spotted a car. Amy calmly spoke to the driver to determine the circumstances of what had happened but it was quickly established the driver was intoxicated. 

Footage recorded at the time showed the dramatic circumstances where Amy was dragged alongside the car 100-metres down the road as she held on for her life as the intoxicated driver tried to leave the scene. 

After realising Amy was being dragged by the car, the driver stopped before being pulled out of the vehicle by Amy and her colleagues where she was arrested.

Thankfully, the terrifying ordeal didn’t result in any serious injuries, as Amy got away with grazed knees from being dragged at speed.

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But the emotional and mental turmoil from the adrenaline rush was an altogether bigger battle.

Reflecting on the incident, PC Greenwood said:  “When working on response you don’t really know what type of jobs you are going to come across. At the time I was just trying to cling on for my life, so I didn’t roll under the car. 

“After what felt like a lifetime, the rest of the incident seems like a blur. Thankfully I had great colleagues who looked after me and were quick to respond once it unfolded. It all went from one extreme to another after having an initial conversation with her that seemed to be going well.

“I have no animosity towards the driver, she is a mother like myself, and I just hope she is getting the support and help she needs to turn her life around.”

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District Superintendent Arif Nawaz, added: “I have immense pride and satisfaction to have someone like Amy as a part of our team.

“She embodies the true essence and spirit of what an officer needs to be at Greater Manchester Police and putting the public safety over her own safety to ensure we were able to bring someone to justice is a true testament to her character and attitude.”

The suspect who was later arrested received a three-month custodial sentence as a result of her reckless actions on that night.

PC Spinks has been recognised for his actions as he tackled a man wielding a machete outside a school in Salford during term time in May, 2022. 

Greater Manchester Police

Paul was off-duty at the time and was not wearing any protective uniform or equipment, he put his own life at risk to ensure that people of Manchester were safe.

Speaking of his experience, PC Spinks, said: “I did what any other police officer would do in that situation by using my training to step in. Taking one knife off the streets is one more in the right direction.”

Detective Superintendent Alicia Smith of GMP’s Trafford District, added: “Paul is a credit not only to our district, but also to Greater Manchester Police as a whole, and it is a privilege to have him serving alongside us.

“I believe his actions and quick thinking that day stopped serious harm coming to innocent members of the public and he put other’s lives ahead of his own – going above and beyond the call of duty and his brave actions should be recognised.”

 

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