In the wake of last week’s announcement that Wilko is set to enter insolvency, the company has reportedly confirmed the closure of 14 stores across the UK. The news puts more than 12,000 jobs at risk as the retail giant grapples with mounting cash pressures.
Wilko’s Chief Executive Officer, Mark Jackson, revealed last week that the company had failed to secure a takeover to alleviate the financial strain and was left with no choice but to consider insolvency. The company filed a notice of intention to appoint administrators at the High Court on Thursday, August 3.
The retail chain, which currently operates around 400 stores across the UK, has been facing challenges for some time. Last year, it borrowed £40 million from restructuring specialist Hilco after reporting significant losses. Earlier this year, Wilko sought to find a buyer and secure fresh funding, enlisting the help of advisers from PwC.
Despite a significant level of interest from potential buyers and indicative offers that met the company’s financial criteria, Wilko was unable to secure the necessary liquidity within the available time frame, leading to the decision to pursue potential insolvency. Mr. Jackson emphasized that the company would continue to explore rescue takeover options in the hopes of preserving the business.
As part of its restructuring efforts, Wilko has already confirmed the closure of 14 stores in various locations across the UK. The affected stores include those in Bournemouth, Stockton, The Fort in Birmingham, Shipley, Scunthorpe, Narborough Road in Leicester, Grantham, Redditch, Rotherham, Skegness, Llanelli, Merthyr Tydfil, Cleethorpes, and Woolwich.
Despite the challenges, Mr. Jackson remains optimistic about the company’s future, stating that their robust turnaround plan, which includes significant cost savings, will pave the way for a profitable Wilko and capitalize on the existing opportunities.
The closure of the affected stores and the potential insolvency of Wilko highlight the ongoing struggles faced by retailers in the UK, particularly in the face of economic uncertainty and changing consumer behaviours.
