HMV owner on brink of rescue deal for most Wilko stores
The owner of HMV is edging closer to a deal which could rescue the majority of Wilko’s stores.
Canadian businessman Doug Putman is in negotiations with the retailer’s administrators PwC regarding an acquisition of around 300 of Wilko’s 400 stores, BBC News has reported.
If Putman’s deal goes ahead, it could mean that thousands of jobs could be saved, however the retailer’s two distribution sites and its head office are still set to close.
Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis.
BBC News said that there is no guarantee the revised bid will succeed, however a source familiar with the situation said that the offer has enough credibility for Wilko’s creditors to be consulted.
Doug Putman purchased HMV out of administration in 2019 saving around 100 stores. He has been credited with turning around the fortunes of the retailer, which earlier this year posted a profit for the first time in four years.
A number of other retailers are also looking to snap up the remainder of Wilko’s estate, including Poundland owner Pepco, B&M, and The Original Factory Shop.
This comes after PwC confirmed the first round of job losses for Wilko staff, following the collapse of a bid from private equity firm M2 Capital. Redundancies at Wilko had been put on hold while administrators considered the offer, with the firm pledging to retain all staff members’ jobs for two years.