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The discount retailer, Wilko, is reportedly making changes to its rent payment schedule, according to The Sunday Times, as the brand looks to “conserve cash” in the run-up to Christmas.
The news comes as retailers are experiencing unprecedented cost pressures, with Wilko citing supply-chain volatility and inflation as major concerns.
The Sunday Times reported that Wilko has communicated with its landlords that the retailer will pay its quarterly rent bill in monthly instalments instead to “manage” cash flow as it stocks up for Christmas.
In addition to the restructuring of rent payments, Wilko is also reportedly working with debt experts, Interpath Advisory, on refinancing its £37.5m credit facility, which is said to be reaching a conclusion.
In the year to January 2021, Wilko reported pre-tax profits of £4.4m on sales of £1.36bn.
Jerome Saint-Marc, CEO of Wilko, said: “Trading is tough for everyone in retail right now, influenced by economic factors and uncertainties out of our control, and we’re having to make smart choices to protect our business.
“Our team members and customers love Christmas, and we start stocking stores early to help families get ready for festive fun. We issued a letter to landlords regarding changes to payment terms in the run up to Christmas to allow us to manage our cash more effectively over the period and put more cash into stock to make sure our customers can get what they need.”
He added: “We’re confident in our financial stability and have strong plans for the future. We can also confirm that no covenants have been breached on our current facility.”
