Wilko appoints advisors ahead of rent cuts
Wilko has appointed property agent CBRE as it prepares to negotiate with landlords about decreasing rents across its stores.
According to Sky News, the retailer is looking to reduce rents in order to avoid closing a significant number of its stores as part of a company voluntary arrangement (CVA).
In 2022 the privately-owned company closed 15 of its shops as it was beset by financial pressures.
At the beginning of the year Wilko announced a turnaround programme and secured a £40m loan from restructuring specialists, Hilco, which owns Homebase.
Mark Jackson, Wilko’s chief executive, said: “We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.”
He added: “We’re in the early stage of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future. We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer.”
Wilko warned it could run out of money after posting a loss of £36.8m in November 2022 as lockdowns, supply chain disruptions and falling consumer demand hit trading.