Wilko could pay no rent on some stores for three years
Landlords of Wilko stores could receive no rent over the next three years as the discount retailer prepares for a Company Voluntary Agreement (CVA).
Wilko is set to undergo its restructuring arrangement from next month, which will see the value chain look to cut rents on 240 of its 400 stores, The Times has reported.
Some landlords could receive no payment at all until the rents revert to their contractual amount after three years, in line with the terms of the CVA.
Wilko is not currently planning to close any of its stores, although it is expected that some landlords will take back control of their properties.
Last week, it was reported that the discount retailer had appointed CBRE as advisors to help slash its rents.
This comes as the retailer’s chief executive looks to turn around the business’ fortunes. Earlier in the year, Wilko secured £40m of funding from Homebase owner Hilco and later axed 400 staff in an attempt to cut costs, following a loss of £36.8m posted in November 2022.