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B&M could reportedly be in line to acquire a number of Wilko stores after rescue talks with HMV owner Doug Putman hit difficulties this week.
According to Sky News, B&M could acquire around 50 Wilko shops, with industry sources adding that Wilko’s administrators could soon announce the first round of estate closures.
One source told Sky that Putman was now in talks to reshape his rescue deal and acquire 200 stores, having “encountered difficulties” during talks with Wilko suppliers, despite having provisionally secured financing for a deal to acquire around 300 stores.
Earlier this week it was reported that Wilko’s administrator, PwC, had 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.
Insiders today told Sky that Putman still remained in a “constructive dialogue” with PwC about a “slimmed-down deal”, although there was no guarantee that an agreement would be reached.
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.
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.
