Wilko starts first round of store closures
Collapsed discount retailer Wilko is to close its first group of 24 shops today following the failure of a potential rescue deal by HMV owner Doug Putman.
Administrators from PwC announced yesterday that, despite exploring all potential opportunities to save the business, it was now clear that “no significant part of the Wilko operations could be rescued as a going concern”.
In a statement, Zelf Hussain, joint administrator, said “Despite the significant and intensive efforts of both ourselves and Putman Investments – the remaining party interested in buying a significant part of the business as a going concern – a transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable.
“We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days.”
All Wilko stores and distribution centres will now be closed by early October with the loss of a further 9,100 jobs. This follows the loss of 1.600 jobs at the retailer in recent weeks.
The 24 shops shutting down today include sites in Acton, Cardiff Bay, Tunbridge Wells and Liverpool.
Family run, Wilko operated 400 stores and employed 12,500 people before it hired administrators last month.
