Wilko to axe key product department

Wilko is set to call time on its toy department and focus on its core home and garden offering, according to a letter seen by industry title toyworld.

The troubled retailer has told suppliers it intends to “focus on [its] heritage” and “discontinue providing an all year round toy offer”, the publication says – with the move marking the latest step in what appears to be a wide-ranging restructure of the business.

toyworld understands Wilko will still provide seasonal and outdoor toys “at the relevant time of year.”

Last week it was revealed that 95 staff at Wilko’s Worksop contact centre could be made redundant after the firm opted to outsource its customer service operations to an undisclosed third party.

A week beforehand, the company announced it had secured a £40m revolving credit facility via a high street investor and made high-profile changes to its leadership team.

The news followed warnings Wilko could run out of cash over the Christmas period – alarm bells that grew louder when its year-end results revealed a £37m loss.

Former Bensons for Beds boss Mark Jackson – widely regarded as a restructuring specialist – was recently named as the new Wilko CEO.

The firm currently has 402 stores and employs around 16,000 people.