Wilko considers CVA among turnaround options
Wilko has confirmed that no decisions have yet been taken on the future of the business amid reports that the Nottinghamshire-based retailer is considering closures.
The company says it has been working on a ‘turnaround plan’ for some months, which seeks to stabilise the business and draw up a strategy for its growth.
With the turnaround programme having been announced in January, business news site Bloomberg reported over the weekend that Wilko is considering entering into a company voluntary agreement. The agreement would renegotiate rents with landlords and potentially close some sites.
But Mark Jackson, CEO of Wilko, said: “We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.
“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. We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer, providing customers a place to shop all their household and garden needs.”
The company announced the closure of 15 stores last year and in January, secured a £40m funding lifeline from Homebase owner Hilco UK after it swung to a £36.8m loss in its last full-year results as a dip in consumer demand impacted trading.
Founded as a hardware store in 1930, Wilko employs around 16,000 people and trades across the UK from around 400 stores.