High street retail chain Wilko has collapsed into administration putting around 12,000 jobs at risk. The retailer’s board appointed Jane Steer, Zelf Hussain and Edward Williams of PwC as joint administrators after falling to secure a buyer for the ailing business.
Wilko will continue to trade from all of its 400 stores across the UK without any immediate redundancies as discussions with interested parties continue. If buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow.
The chain, which was founded in 1930, has been hit hard by challenging trading conditions created by the pandemic and the cost of living crisis, resulting in increasing cashflow pressure and a deterioration in trade.
Hussain said: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business. Many high street retailers are facing a number of well-documented challenges and Wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.
“Wilko has been a staple of many British high streets for decades. We know that the appointment of administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.
“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”
Responding to the news, Simon Morris, managing partner at GCW, said: “Demand from alternative occupiers for Wilko’s stores will be high where there is limited out of town offer and these provide the opportunity for large space users to secure stores. This will especially be the case for those locations in London. Discounters such as B&M and Home Bargains are strong candidates for out-of-town stores where they are unrepresented across the UK.
“Ultimately these will represent a small proportion of the circa 400 stores in Wilko’s portfolio. Regional locations are likely to be most impacted especially those locations where there is already significant void.”
