HMV owner fails with Wilko rescue deal

A rescue deal for collapsed high street retailer Wilko which could have saved thousands of jobs has failed after HMV owner Doug Putman pulled out of the deal due to rising costs.

Putman had reportedly planned to keep up to 300 stores, however it is thought that the deal was complicated by the need to replace and rework Wilko’s supply chain after a number of its suppliers wanted their debts repaid now in order to continue to guarantee supplying Wilko’s stores.

In a statement to The Sun newspaper, Putman said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.

“A stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted.”

Administrators PwC had already revealed that over 1,016 redundancies would be made at 52 shops already confirmed to close and it is believed that number will now likely increase with rival retailers such as Poundland or the Range interested in only the stores themselves.

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.