Wilko considers CVA as it struggles with rent
Wilko is considering a company voluntary arrangement (CVA) as it looks to renegotiate rents and potentially close a number of its stores.
The discount retailer has approached advisers at PricewaterhouseCoopers (PwC) to explore a number of options, Bloomberg has reported.
The retailer has looked to cut costs in recent months, having let go of over 400 jobs at the beginning of the year.
In January, Wilko received £40m in funding from Homebase owner Hilco after falling into a £36.8m loss over the last financial year. The retailer said it could run out of funds by the end of the year if trading conditions failed to improve.
Wilko chief executive Mark Jackson told Bloomberg: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”