Wilko to axe 1,300 jobs and close 52 stores

Wilko is set to close 52 stores and make 1,300 redundancies across the business as rescue talks for the retailer continue, its administrator confirmed today.

Earlier today, PwC confirmed that it has agreed to provide B&M with the option to acquire up to 51 properties, after the administration trading period concludes at those sites. 

However, the firm said it “has become clear from these discussions that some stores do not form part of any ongoing interest in the Wilko store portfolio”, and as such, confirmed the closure of 52 stores and redundancies of 1,016 staff based at these sites, with a further 299 redundancies at two distribution centres in Worksop and Newport. 

Last week, the firm confirmed that 269 support centre employees would be made redundant effective from 4 September, with further redundancies across the two distribution centres expected.

At the time, PwC 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”.

Speaking today (5 September), Edward Williams, joint administrator, said: “In the absence of viable offers for the whole business, very sadly store closures and redundancies of team members from those stores are now necessary, in addition to the already announced redundancies at the support centre and distribution centres. 

“We know this has been a deeply unsettling time for everyone concerned and would like to express our gratitude to all wilko team members for the dedication and support they have continued to give the business in the most trying of circumstances.”

News of Wilko’s collapse first emerged earlier this 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.

Last week, Canadian businessman Doug Putman reportedly made a last-ditch attempt to rescue parts of Wilko in a move that could save up to 4,000 jobs. 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.

It was later reported that B&M was set to acquire a number of Wilko stores after rescue talks with Putman reached difficulties. A source told Sky News 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.