All Wilko stores to close after rescue deal collapses
All 400 Wilko stores are set to close by early October, the GMB Union has announced.
This comes after a bid from HMV owner Doug Putman fell through.
The Canadian businessman had been eyeing a purchase of up to 300 Wilko stores, but rising costs involved in the potential deal have ground it to a halt.
In a statement to The Sun newspaper, he said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.
“A stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted,” he added.
Wilko’s administrator PwC is expected to announce further details of redundancies and store closures soon.
Some parties reported to have been interested in purchasing part of Wilko’s estate include Poundland owner Pepco and The Original Factory Shop. It is understood that these would not be run under the Wilko brand.
Earlier this month, rival chain B&M acquired over 50 stores from Wilko in a £13m deal, although did not specify which ones.
Wilko fell into administration in August after a difficult post-Pandemic period saw lower footfalls and a decline in consumer spending due to the cost-of-living crisis.
At the time, Wilko employed over 12,500 members of staff across around 400 stores. The first redundancies began last week at two distribution centres in Worksop and Newport, after being put on hold as administrators considered Doug Putman’s last-minute offer.