Wilko enters administration
Wilko has entered administration after failing to secure a rescue deal to save its 400 shops across the UK.
The move has put 12,000 jobs at risk.
The high street homewares retailer said it had been left with no other choice than to appoint administrators after leaving “no stone unturned” in efforts to save the business.
Mark Jackson chief executive of Wilko, said: “Over the past six months we’ve been open with all our stakeholders, including our team members, that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
“We left no stone unturned when it came to preserving this incredible business, but must conclude that with regret, we’ve no choice to take the difficult decision to enter administration.
“I’d like to take the opportunity on behalf of all the directors and Wilkinson family to thank all of our customers and our hardworking team members across our stores, logistics and support centre who remained loyal to Wilko. It’s been an honour to have worked alongside you all as we fought to realise and to maximise the significant opportunities that existed to re-establish Wilko.”
Wilko announced its intention to appoint administrators last week which meant it had 10 days to secure a rescue. Earlier this year, the company received £40 million in funding from Homebase owner Hilco, changed it leadership team, and cut jobs.
Today Jackson said the company had received a significant level of interest and “indicative offers that we believe would meet all our financial criteria to recapitilise the business”.
However, he added: “Without the surety of being able to complete the deal within the necessary time frame and given the cash position, we’ve been left with no choice to take this unfortunate action.”
It is understood that Wilko will continue trading as usual for the time being.
