Wilko collapses into administration
Wilko has collapsed into administration, as the retailer’s hopes of a rescue deal fall through.
The discount retailer has appointed current adviser PwC as administrator after talks with interested parties dwindled.
The fate of over 400 stores and 12,000 jobs are now at risk.
Wilko chef executive, Mark Jackson, said the retailer’s management had left “no stone unturned” in its efforts to rescue the business.
“We’ve no choice but to take the difficult decision to enter into administration,” he added.
Last week, Wilko filed a notice of intent to appoint administrators. The struggling retailer had considered a number of options, including a Company Voluntary Agreement, but was also looking to secure a deal to protect it from creditors.
The owner of Laura Ashley, Gordon Brothers, was reported as one of the parties that was interested in a bid for the retailer.
Wilko had previously appointed CBRE to help deal with landlords as it looked to slash its rents.
It was also reported in January that Wilko had secured a £40m revolving credit facility from Homebase owner Hilco as it looked to reverse its fortunes.