Budget retailer Wilko at risk of collapse
Discount retailer Wilko could be on the brink of collapse after it took the “difficult decision” to file notice of intent to appoint administrators.
The budget chain which sells homeware and garden goods out of 400 stores and which employs 12,000 workers confirmed it filed a ‘notice of intention to appoint administrators’ (NOI) at the High Court.
It comes as the chain has been unable to secure a rescue package, but confirmed there are no immediate store closures and the business continues to trade as usual during this period. It also continues to offer shoppers a 10% discount online for new member sign-ups.
Wilko CEO Mark Jackson, said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI.
“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. We’re a £1.2bn turnover business with strong presence on UK high streets through our 400 stores, online at wilko.com and through our great value Wilko own brand products, serving local communities with their everyday household and garden needs for over 90 years.”
Jackson added that it will continue to progress these indicative offers but said: “Without the surety of a recapitalisation being able to be completed within the necessary timeframe and given the cash position, we’ve been left with no choice but to take this action.”
While Wilko continues to trade as normal for now, if you would like to return an item for a refund, or you have a gift card to use, you may want to do so sooner rather than later.
As we’ve seen with previous administrations such as Made.com, creditors including those awaiting goods they paid for may struggle to get all their money back.