HMV owner secures creditor backing for Wilko rescue deal

Administrators to Wilko have reportedly secured the backing of creditors for a rescue deal led by HMV owner Doug Putman in a move that could save around 8,000 jobs.

According to The Sunday Times, PwC is understood to have secured support from the Pension Protection Fund as well as other creditors, including major landlords and suppliers.

Over the weekend, administrators were reportedly investigating the financing behind Putman’s offer, which is mostly in the form of debt provided by Gordon Brothers, an investment company that lends to firms in financial distress. 

The Times reported that PwC is seeking to understand the terms attached to the debt and how quickly it can be put in place.

Sources added that a deal could be announced as soon as today (4 September).

Reports that Putman tabled a last-minute offer for the retailer first emerged last month. According to The Times, Putman, who purchased HMV in 2019, held talks with Wilko’s management team and administrators from PwC ahead of a final deadline for offers.

However, in a statement released last week (31 August), PwC confirmed that 269 support centre employees will now be made redundant, effective from close of business today (4 September), with further redundancies across the two distribution centres expected from early next week.

The firm said that while discussions continue with those interested in buying parts of the business, “it is now clear that no viable offer structure put forward includes the group in its entirety”.

News of Wilko’s collapse first emerged last month, as CEO Mark Jackson said the business had left “no stone unturned” in an attempt to keep the business afloat, but conceded there was “no choice but to take the difficult decision to enter into administration”.

PwC, who handled the administration, sought buyers for at least a part of the business in the coming weeks.