Wilko files notice to appoint administrators
Discount homeware and garden retailer Wilko has filed a notice of intent to appoint administrators.
The struggling retailer has considered a number of options, including a Company Voluntary Agreement, however it is now looking to secure a deal to protect it from creditors.
Wilko is being advised by PwC, and previously appointed CBRE to help deal with landlords as it looked to slash its rents.
Mark Jackson, CEO of Wilko, said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI (notice of intent).”
The retailer had previously secured a £40m revolving credit facility from Homebase owner Hilco as it looked to reverse its fortunes.
Its owners were also reported to have been considering a sale, which would see the family-owned business under a different ownership for the first time in its 93-year history.
“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist”, Jackson added.
Wilko trades out of over 400 stores in the UK.