Wilko has today, Thursday 10 August, 2023, collapsed into administration and appointed PwC to lead the process.
12,000 jobs will be put at risk following the news. The retailer had been attempting to find a rescue deal since it filed its notice of intention to appoint an administrator last week.
Despite reporting a ‘significant level of interest’, though, Wilko was unable to finalise a deal within the necessary timeframe.
Wilko ceo, Mark Jackson said: “Given the cash position, we’ve been left with no choice but to take this unfortunate action.
“Over the past six months, Wilko has been very open that we’ve been considering options to accelerated a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
“We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter administration.”
All Wilko stores will continue to operate without any immediate redundancies, as discussion with interested parties continues.
PwC partner and joint administrator, Zelf Hussain, added: “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.”
Mark continued: “Since January and with the help of retail advisers and experts, we’ve been facing into problems and have seen real progress against many areas of our plan. We’ve made significant savings across our cost base and have been considering various options based on advice given regarding our store costs.
“We’ve all fought hard to keep this incredible business intact, but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as possible, by working with our appointed administrators.”
