Wilko job cuts to begin next week after rescue deal falls through
Administrators for Wilko have announced that job cuts at the discount retailer’s support centre and warehouses are set to begin early next week after a last-minute rescue bid from the M2 private equity firm fell through.
PwC said in a statement: “While discussions continue with those interested in buying parts of the business, it is now clear that no viable offer structure put forward includes the group in its entirety.”
Some 269 staff at Wilko’s Worksop support centre will be made redundant on Monday while further redundancies will take place across the retailer’s distribution centres in Worksop and Newport from early next week, with numbers yet to be confirmed.
The administrators also said that no viable offers had been received for Kin, Wilko’s product development arm, which means its 14 employees will also be made redundant on Monday.
According to The Guardian, around a third of the 1,400 staff at Wilko’s head office and distribution centres are expected to lose their jobs in the next few weeks.
Jane Steer, joint administrator, said: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.
“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.
“We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus and other agencies
It is understood that M2’s bid collapsed after the firm failed to provide proof of funding to the administrators, although talks with HMV owner Doug Putman are continuing.
Wilko has around 400 stores and 12,000 employees across the UK.
