Wilko redundancies to begin as rescue talks collapse

Hundreds of redundancies are set to begin at Wilko after last-minute rescue talks with potential buyers fell through, its administrator has confirmed. 

In a statement released today (31 August), PwC confirmed that 269 support centre employees will now be made redundant, effective from close of business on Monday (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”.

It added that no viable offers were received for Kin Limited, a subsidiary of Wilkinson Hardware Stores Ltd, and as such, the company has had to close, resulting in 14 further redundancies.

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 M2 Capital had also tabled a last-minute offer for the retailer, but reportedly wrote to PwC chair Bob Moritz to criticise the bidding process and question whether it was “fair and transparent” after submitting an offer worth £90m. 

In a statement made today (31 August), Jane Steer, joint administrator from PwC, said: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.

“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.”

She added: “We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus and other agencies.”

All stores are currently trading and remain open.