Gordon Brothers considers Wilko rescue bid
The owner of brands such as Laura Ashley is reportedly considering a rescue bid for ailing retailer Wilko, which filed a notice of intent to appoint administrators last week.
Gordon Brothers, which specialises in investing in struggling retailers, is in talks with Wilko’s advisers regarding a potential deal, Sky News has reported.
Sources told Sky News that an offer could see Gordon Brothers provide funding to the discount retailer, enabling a restructuring process which would see the closure of a significant number of stores and the loss of many jobs.
However, insiders added that the chances of a deal being met were “relatively low”.
Other sources told Sky that Gordon Brothers was considering a partnership with other invests to provide around £20m of equity, while supplying Wilko with about £50m in debt financing.
Specialist investors Alteri and Opcapita have also considered offers for Wilko over the last few weeks, but these deals are considered to be unlikely to at this point.
Wilko’s adviser, PwC, is reportedly seeking binding offers within the coming days as the retailer comes close to running out of cash.
If Wilko goes into administration, PwC will commence another sales process before liquidating the retailer’s assets if no buyer can be found.