News
Wilko stores set to close with ‘significant job losses’, administrators say
Job losses are now expected with around 12,500 at risk
The administrators of Wilko have said jobs are set to go and stores to close after attempts to find a buyer for the company failed.
However, PriceWaterHouseCoopers (PwC) said parts of the company could still be bought.
The homeware and hardware retailer announced earlier this month that it was facing administration unless a rescue deal could be made by a specialist investor, although it did not look likely. Now, 12,500 jobs and 400 Wilko stores are at risk.
PwC, advisors for the family owned retailer, were tasked with trying to find a buyer for all or part of the business.
In a statement PwC said: “While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole group.
“Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives.”
It said although it understood the news would bring uncertainty for staff, in the immediate term, all stores will continue to trade and staff would continue to be paid. PwC has said it currently has ‘no plans to close any stores next week’ and will be supporting workers.
GMB, the union representing workers, said that some stores might be bought, but ‘significant job losses’ were now expected.
National secretary for the union, Andy Prendergast, has said it would seek to ensure its members receive ‘every penny’ they are entitled to.
He added: “We will fight to ensure Wilko bosses are held accountable for the simple reason our members deserve so much better.”
Over the past year, Wilko has closed down 14 different stores across the UK.
Wilko has been owned by the Wilkinson family, which established the business, since 1930. It’s best known for its affordable everyday household homeware and hardware items.
Many of its stores are located in town centres, high street locations, which have become increasingly expensive over time and a liability – especially during a cost-of-living crisis.
Customer shopping habits have also contributed to the downfall of retailers in town centres as people have opted to shop more online or at retail parks, out of convenience and hunting for bargains.
Wilkos has faced huge competition over the years from rival bargain stores including Home Bargains, B&Ms, The Range and Poundland, with rumours that one of these could be among those interested in the firm.