The Beginning of the End for Wilko
The first wave of Wilko store closures is set to commence this Tuesday, signalling the unfortunate end of a retail brand that has been a fixture on the British High Street for decades. After the collapsed retail chain failed to secure a buyer, 24 stores, including those in Liverpool, Cardiff, Acton, and Falmouth, will be among the first to shut their doors. An additional 28 branches are scheduled to close later in the week. This marks the beginning of a swift and comprehensive closure of all 400 Wilko shops, a process expected to conclude by October.
The repercussions of these closures are substantial, with approximately 12,500 employees likely to lose their jobs. Wilko fell into administration in August due to mounting losses and intense competition from other discount chains, including Poundland and The Range.
A potential lifeline emerged when Doug Putman, the billionaire owner of music retailer HMV, expressed interest in acquiring up to 300 Wilko shops. However, this bid faltered as rising costs complicated the deal. On Monday, administrators PwC sadly announced that “despite extensive efforts,” it had become apparent that “no significant part of the Wilko operations can be rescued.”
Rival retailer B&M has stepped in to purchase 51 of Wilko’s properties in a £13 million deal. However, it is understood that these stores will not continue under the Wilko brand. Poundland is also reportedly interested in acquiring up to 70 Wilko stores, with plans to rebrand them as part of its own portfolio.
Amidst this challenging situation, other retailers, including Dunelm and Toolstation, have extended a helping hand to Wilko employees by encouraging them to apply for positions within their businesses. These retailers have pledged to prioritise Wilko staff for job vacancies, offering a glimmer of hope in a difficult time for the retail workforce.
Hostess Brands Acquired in $5.6 Billion Deal by JM Smucker
In the realm of American snack and food giants, a significant acquisition is underway as JM Smucker prepares to acquire Hostess Brands in a deal valued at $5.6 billion (£4.5 billion). This acquisition brings together two iconic companies, each renowned for its respective products.
Smucker’s Chief Executive, Mark Smucker, expressed enthusiasm about the acquisition, stating, “With this acquisition, we are adding an iconic sweet snacking platform… to drive continued growth.” The news of the acquisition resulted in a surge in shares for Smucker, known for its brands such as fruit preserves and Jif peanut butter.
Hostess Brands, known for household favourites like Twinkies, Donettes, and Ho Hos, has been a staple in American homes for generations. The company, based in Lenexa, Kansas, traces its roots back over a century, with the first Hostess CupCake being sold during that time.
Several major food brands, including PepsiCo, Mondelez International (makers of Oreo), and General Mills (makers of Cheerios), were reportedly interested in acquiring Hostess. Smucker anticipates completing the deal in the third quarter of its current financial year.
This acquisition marks a significant development in the ever-evolving landscape of the food industry, with two giants coming together to further strengthen their market presence.
UK Government Invests in Rare Earth Magnet Recycling for Ford EVs
Ionic Rare Earths (IXR.AX) has announced that it has secured UK government investment to establish a commercial rare earth magnet recycling facility in Belfast. This facility is set to supply Ford’s electric vehicle (EV) production facilities in the United Kingdom.
The developer’s plan involves producing high-purity, separated rare earth metals at a commercial plant in Belfast. These materials will be supplied to Less Common Metals (LCM) for alloy production, eventually being transformed into magnets for Ford’s local EV production.
