Wilko family under pressure to fill £70m pension deficit

Wilko’s founding family is reportedly under pressure to pay £70m to fill the collapsed retailer’s pension hole, This is Money has reported. 

According to reports, Amalgamated Holdings Wilkinson Limited (AHWL), Wilko’s ultimate parent whose directors include Lisa Wilkinson, has no plans to pay up. 

Wilkinson, the granddaughter of Wilko founder James Kemsey Wilkinson said they have no obligation to pay as AHWL had “never been the sponsoring employer”, This is Money reported. 

The news comes after the Mail on Sunday revealed that in the aftermath of Wilko’s collapse, the Wilkinson family had extracted £77m in dividends over the preceding decade.

At the time of its collapse, Wilko had debts as high as £625m, which left its pension fund with a deficit. This means that over 1,000 workers who are yet to retire face the prospect of reduced annual incomes for life. 

John Mann, a former Labour MP and Treasury Select Committee chairman, whose Bassetlaw constituency included Wilko’s Worksop headquarters, criticised Wilkinson’s comments and described the family as “the new unacceptable face of capitalism”. 

Meanwhile, GMB Union’s national officer, Nadine Houghton, called the Wilkinson family’s actions “an absolute disgrace”.  

That said, the Pension Protection Fund (PPF) could be bailing out Wilko’s pension plan, as it is currently assessing the scheme. 

It is understood that only £20m of the deficit is currently secured against Wilko’s assets, which means that pensioners will lose the bulk of what they are owed unless the Wilkinsons supply the remaining £50m or the PFF fills the gap on their behalf. 

A PPF spokesman told This is Money: “We are working closely with The Pensions Regulator and the scheme trustees to ensure the best possible outcome for members.

“We want to reassure members, at what must be a concerning time for them, that we are here to protect them for as long as they need us.”