Wilko calls in advisors ahead of rent cut talks 

Wilko has reportedly appointed property advisers ahead of crunch talks with landlords as the group looks to cut rents across its estate.

According to Sky News, the group has drafted in property agent CBRE ahead of formal negotiations with shop owners, which are expected to start in the coming weeks.

A source told Sky that Wilko was “unlikely” to permanently close a substantial number of its stores as part of a CVA that is currently being finalised, with the restructuring set to focus on rent reductions instead. 

Reports of the CVA first emerged last month, with Bloomberg reporting that the struggling discount chain reached out to PwC to explore its restructuring options.

This has followed efforts by the retailer to cut costs across its stores in recent months, including cutting over 400 roles at the start of the year.

In January, Wilko also secured £40m worth of funding from Homebase owner Hilco UK after it swung to a £36.8m loss in its last full-year results, as a dip in consumer demand impacted trading.

As a result of its poor performance, the retailer warned it could run out of cash by the end of this year if trading conditions deteriorated further.

Mark Jackson, Wilko’s chief executive, said: “We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy. We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.

“We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer, providing customers a place to shop all their household and garden needs.”