Scramble to save 12,000 Wilko jobs as administrators weigh up rescue bids
Wilko administrators were last night poring over rescue bids amid hopes that thousands of jobs can be saved.
The budget homewares retailer collapsed into administration last week, leaving 12,000 jobs, 400 stores and the Wilko name in the lurch.
Administrators at PwC set a deadline of end of business on Wednesday for offers to save it.
A ‘handful’ of bids had been made, a source close to the deal said. Administrators are weighing up the options for creditors in the hope that a deal can be agreed by early next week.
A spokesman for the GMB union, which represents some Wilko staff and is liaising with PwC, said there was ‘still hope’. The union met administrators formally for the first time last night.
Collapse: Budget homewares retailer fell into administration last week, leaving 12,000 jobs, 400 stores and the Wilko name in the lurch
Potential buyers are thought to include rivals B&M European Value Retail, Poundland, The Range and Home Bargains.
But it is up in the air as to whether they would keep the signature Wilko brand.
Employees are worried that Wilko’s retirement fund faces a big shortfall, meaning that pensioners may have a reduced annual income.
Although the scheme may be bailed out by the industry lifeboat the Pension Protection Fund, union chiefs and staff are enraged at bosses’ decisions to pay £77million to the owners and former shareholders over the last decade.
The chain was controlled by descendants of the founder, James Kemsey Wilkinson.
The GMB has called on the Wilkinson family to ‘plug the pension pot deficit’ and said ‘no worker should carry the burden of the bosses’ financial failings’.
Danni Hewson, head of financial analysis at AJ Bell, said: ‘Market watchers have been keeping an eye out for smoke signals from Wilko’s administrators after the deadline for bids came and went.
‘With thousands of staff waiting anxiously to discover if they’ll still have a job at the end of the week this is a chapter in UK retail that everyone hopes will have a somewhat happy ending, but the lack of any news suggests negotiations are tough.’
