Following its notice of intention to appoint administrators last week, it has been reported that potential buyers would need to invest up to £70m to rescue the retailer.
The Sunday Times has reported that PwC, advisor to Wilko, is in talks with a rival discount retailer and two private equity firms as it seeks to find a buyer to avoid the collapse of the company.
The £70m needed to be invested raises concerns over whether it will be possible to secure a solvent sale of the business. Around £30m would be needed for stock, while around £40m is required to pay off debts to Hilco, a lender to Wilko.
Wilko filed notice of intention to appoint administrators last week. The retailer had already been looking for a buyer and ceo Mark Jackson said the firm had received: “A significant level of interest including indicative offers that we believe would meet all our financial criteria to recapitalise the business.”
The retailer has confirmed it will go ahead with its plan to shut down 14 stores immediately.
