Wilko calls in advisers amid cost-cutting measures
Rising inflation, shipment delays and store closures during the Queen’s funeral have affected Wilko’s business, and Teneo is now assessing options for the business
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Wilko has reportedly drafted in Teneo as advisors as the retailer seeks to cut costs across the business amid the cost-of-living crisis, according to Retail Week.
Wilko is reportedly mulling potential cost-cutting and restructuring options as it seeks to shore up its balance sheet.
Rising inflation, shipment delays and store closures during the Queen’s funeral have affected Wilko’s business, and Teneo is now assessing options for the business.
The retailer has extended its payment period to a minimum of 60 days and told suppliers that bills due to be paid between 11 September and 8 October would now instead be made in the following month.
According to Retail Week, Wilko said the changes better reflect a shift in the wider retail industry standard from monthly payments to every six weeks.
The news comes after Wilko brought in Interpath Advisory to refinance its £37.5m revolving credit facility in September. According to The Sunday Times, Wilko made the move due to supply-chain volatility and inflation.
Wilko has warned landlords that it will be paying its quarterly rent bill in monthly instalments to manage cash flow as it conserves cash in order to stock up for Christmas.
