Poundland and B&M deals for 100 Wilko stores facing collapse due landlord haggling
The acquisition of 100 Wilko stores by B&M and Poundland could fall through, as the discount retailers attempt to negotiate more favourable terms with landlords.
B&M, which acquired 51 Wilko stores, has been accused of delaying completing deals while it looks to set up new rent and lease arrangements and to renegotiate the terms in its favour, The Times reported.
Poundland is also trying to secure back-to-back rent deals on the 71 Wilko stores it snapped up last month with landlords.
The no frills retailer revealed yesterday that it had taken over 20 former Wilko stores. But across the two retailers there are still over 100 formal applications yet to be submitted for the stores.
Property sources told the outlet that if the two firms cannot reach an agreement with landlords then the deals to acquire stores could fall through, resulting in “more store closures, further job losses and an even smaller return for Wilko creditors”.
Wilko collapsed last month after a number of deals to save the store in its entirety fell through including one from the owner of HMV, Doug Putman.
News of the 100 transformed stores potentially not being able to open will crush the hopes of former Wilko staff who were looking to be offered job roles at the stores.
Yesterday Poundland said it had made 200 job offers to former Wilko colleagues and encouraged more ex employees to apply for roles at the soon to be Poundland stores.
Over the course of just the last three weeks, Poundland said it has been prioritising former Wilko colleagues for roles in the new stores.
City A.M has contacted B&M and Poundland for a comment.