The familiar Wilko name will vanish from UK High Streets as a rescue deal for the chain has fallen through, marking a significant shift in the retail landscape.
GMB, the trade union, has confirmed that all 400 Wilko stores across the UK will be closing their doors by early October. Unfortunately, this development appears to make redundancies likely for the 12,500 staff members employed by the family-owned business.
Despite efforts to secure the future of the chain, no bidders have expressed interest in maintaining the Wilko brand. However, some parties have shown interest in rebranding and taking over the stores.
Doug Putman, the billionaire owner of HMV, had initially aimed to keep around 300 Wilko shops open, but his bid ultimately failed due to rising costs complicating the deal.
Administrators are expected to provide further details regarding redundancies and store closures in the near future.
Wilko has faced fierce competition from rival chains like B&M, Poundland, The Range, and Home Bargains. The high cost of living has driven consumers to seek bargains, benefiting these competitors.
B&M has announced its intention to acquire up to 51 of Wilko’s 400 shops in a £13 million deal. These stores are expected to be rebranded as B&M shops. It remains unclear whether any jobs will be preserved or if Wilko workers will receive preference when applying for roles at the B&M stores.
Many Wilko stores are located in High Street areas of traditional town centres. While these locations have been convenient for shoppers without access to cars, the pandemic has accelerated a shift towards larger retail parks and out-of-town options, benefiting competitors such as B&M.
Poundland has also expressed interest in purchasing up to 70 Wilko stores to bolster its own portfolio.
While the Wilko brand may be vanishing from High Streets, it remains up for grabs, with retailers including The Range considering bids for the name specifically.
Wilko’s financial struggles were revealed in August when the company entered administration, raising concerns about the job security of its employees.
PwC, the administrators, had previously announced 1,016 redundancies at 52 shops across the country, which were set to close in the following weeks. An additional 299 redundancies took place at Wilko’s two distribution centres in Worksop and Newport, which are scheduled to close soon, along with over 260 redundancies at its support centre.
Canadian entrepreneur Doug Putman’s rescue bid encountered challenges related to the costs and complexities associated with overhauling Wilko’s supply chains. Although he initially considered up to 300 shops, the most recent deal might have included around 100. Ongoing day-to-day expenses, rents, and supplier contracts posed further challenges to the rescue attempt.
In a statement, Doug Putman expressed his disappointment, stating, “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.”
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