Wilko job cuts ‘likely’ – but 11th hour talks with Poundland owner continue
Administrators for Wilko today warned that job losses were “likely” as potential buyers were no longer interested in acquiring the whole group.
Wilko first called in the administrators three weeks ago after several months looking for investment failed to bring forth any fruit.
Sky News reported today that Poundland owner Pepco Group is in advanced talks to acquire around 100 stores.
Fellow discount chain B&M European Retail has also been in negotiations to take on around 50 shops and TOFS, owned by private equity firm Duke Street, could strike a deal for 10 stores, the report said.
However, even if deals are struck with these firms, this will leave a significant number of Wilko stores – there are 400 – unsupported and likely to face closure.
Administrators from PwC said in a statement that while there were interested parties for segments of the chain, “the nature of this interest is not focused on the whole group”.
“Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives,” PwC said.
PwC will make an announcement tomorrow outlining any sale agreements and details for the 12,500 employees at Wilko.
Commenting on the news, trade union GMB said it will continue to support members at Wilko through the process and fight to ensure Wilko bosses are held accountable.
“GMB will not forget the incompetence that has led to this collapse and will we not forget the dividends paid to the millionaires who gambled your jobs on their whims,” Andy Prendergast, GMB National Secretary, said.