Majority of Wilko stores to close as rivals eye estate
The majority of Wilko’s stores are set to close “within weeks” after a purchase of the value retailer fell through.
Wilko’s administrators, PwC, told the GMB Union on Wednesday that there was “no longer any prospect that the majority of the business will be saved”.
The union said this means that redundancies for staff in stores and call centres would begin during the coming week.
GMB said that some stores may be bought either individually or as larger packages, however “significant job losses are now expected”.
The retailer fell into administration earlier this month after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis.
Last week, parties interested in a full takeover were given until 16 August to put forward any initial rescue bids.
In a statement, PwC said: “While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole group.
“Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives.”
Andy Prendergast, GMB national secretary, said: “GMB Union will continue to support our members through this process and will fight to ensure they are consulted as per the law and receive every penny they are entitled to.
“We will fight to ensure people are held accountable for this situation for the simple reason our members deserve so much better.”
Rival retailers are now looking to snap up parts of Wilko’s estate, Sky News has reported. This includes Pepco, which owns Poundland, who is reportedly eyeing around 100 stores, a quarter of Wilko’s estate.
Other retailers include B&M, who is in negotiations for around 40 to 50 stores, while The Original Factory Shop is also interested, as it looks to take on smaller packages comprising around 10 units.