Advisors brought in at Wilko as cashflow pressures bite

Wilko is considering a range of cost-cutting options after a combination of “soaring inflation, shipment delays and store closures” impacted its bottom line, Retail Week reports.

The trade title says the Worksop-headquartered retailer has called in global advisory giant Teneo as cashflow pressures intensified by the cost-of-living crisis continue to bite.

The news comes after Wilko brought in Interpath Advisory to refinance its revolving credit facility.

In January, Wilko launched a review of its store portfolio and has since closed 15 sites across the UK.

Its CEO Jerome Saint-Marc said at the time there was “no denying the way people shop with us and where they want to shop with us is changing.”

Now, a perfect storm of dwindling consumer confidence, skyrocketing inflation and problems with suppliers appears to have forced the budget retailer to call in help.

The company recently changed its payment terms in a move which reportedly angered suppliers.

It has extended its payment period to “a minimum of 60 days” and says suppliers it was due to pay between 11 September and 8 October will now have to wait until the next month.

TheBusinessDesk.com has approached Wilko and Teneo for comment.