Struggling Wilko secures £40m lifeline
Discount retailer Wilko has secured fresh funding in a bid to change the business’s fortunes.
It has also replaced the founder’s granddaughter Lisa Wilkinson as chair, however she will remain on the board.
Special situations investor Hilco, who owns Homebase and Denby, will provide the £40m asset-backed credit facility.
According to documents handed into Companies House last month, Wilko will also be handing over much of its intellectual property, including logos, slogans and product designs and names.
Wilko attempted to balance the books with the £48m sale and lease-back of its distribution centre in November, however has since attempted to secure emergency funding.
The family-owned retailer previously warned that if trading continued to deteriorate and no further funding could be secured, then it ran the risk of running out of cash by the end of the year.
After a difficult pandemic, the business has found it difficult to recover. Despite its stores being allowed to remain open, many were located in high streets and shopping centres and as a result suffered from lower footfall.
Wilko previously said that it “has not been performing to its full potential”.
The retailer currently employs around 16,000 people.