In a recent announcement by the GMB union, it has been revealed that all 400 Wilko stores will cease operations by early October.
A potential lifeline for the struggling retailer, involving a rescue deal led by HMV’s billionaire owner, Doug Putman, has reportedly collapsed today, leaving the future of Wilko uncertain.
While various other companies have shown interest in taking over some of Wilko’s outlets for different retail brands, there are currently no known plans to continue running them as Wilko stores.
The GMB union has expressed concerns that the closure could result in the redundancy of all 12,500 individuals currently employed by the retail chain.
PwC, the firm tasked with managing Wilko’s future after it entered administration last month, has yet to provide official comments on these latest developments. Previously, PwC had confirmed over 1,000 job redundancies at 52 branches set to close this week, further adding to the turmoil.
Mr. Putman, a Canadian entrepreneur, reportedly scaled back his initial buy-out plan from 300 to around 100 stores due to the escalating costs associated with revitalising the business and sustaining it during this critical period.
It is believed that these financial challenges ultimately forced him to withdraw from the rescue attempt.
In a statement to the BBC, Mr. Putman expressed his disappointment, saying, “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.”
He further added, “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.”
Criticism has been directed at the Wilko family, who were in charge of the company until its financial difficulties escalated. During periods of substantial losses, it continued to distribute millions in dividends to its owners.
Lisa Wilkinson, the granddaughter of the company’s founder, James Kempsey Wilkinson, defended these payouts, stating that they “wouldn’t have made the difference.” She said that the management team had made extensive efforts to revive Wilko’s fortunes.
