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Wilko’s administrator has warned about “likely” redundancies and store closures but insisted that talks to offload parts of the estate were still ongoing.
Insolvency practitioners at PwC have been seeking a buyer for the discount chain’s stores, brand and remaining assets since it collapsed on August 10, with hopes that as many as 300 stores could be saved.
In an update on Wednesday afternoon, they said that while suitors were not interested in buying the whole group, which will probably lead to redundancies and store closures in the future, “discussions continue with those interested in buying parts of the business”.
PwC insisted that there were currently no plans to close any stores next week after GMB, the union which represents thousands of workers at Wilko, said on Wednesday that store closures were imminent following a meeting with the administrators.
“In the immediate term, all stores remain open, continue to trade and staff continue to be paid,” PwC added. “We know this will further add to the uncertainty felt by workers.”
Jonathan Reynolds MP, Labour’s shadow business secretary, said Wilko’s collapse “will have a massive impact on high streets” up and down the country. The chain trades from about 400 stores and employs 12,500 staff.
The demise of Wilko carries echoes of that of Woolworths, which failed in 2008. Other high-profile UK retail collapses in recent years have included Sir Philip Green’s retail empire, Debenhams, and more recently McColl’s, the corner shop chain subsequently bought by Morrisons.
Many discount chains have thrived in recent years but Wilko struggled in the face of increased competition from rivals such as B&M and Home Bargains and supply chain problems. Its dwindling stock meant that it missed out further as shoppers switched to rivals.
