Wilko mulls CVA as restructuring plans gather pace
Struggling Nottinghamshire value retailer Wilko is considering enter a company voluntary arrangement (CVA) in a move that could cut rent costs.
According to reports by Bloomberg, the firm has approached PwC to examine restructuring plans. Any CVA would help it renegotiate rental terms landlords and other creditors.
The move comes after Wilko said it would be cutting 400 jobs as part of a major restructuring drive in February.
Wilko CEO Mark Jackson said at the time: “We’ve identified significant changes to the Wilko operating model to enable us to stabilise the business and then thrive again. This includes some proposed changes to our management structure at both our stores and head office.”
In November, Wilko’s distribution centre in Worksop was sold to Canadian private equity firm Brookfield for £88m just two months after the retailer completed a £48m sale and leaseback deal with delivery giant DHL for the 1.1m sq ft property.
In November, Wilko said the DHL deal was the first in a series of “transformational efficiencies” it had planned in order to cut costs.
The retailer has since installed former Bensons for Beds boss Jackson as CEO and secured a £40m revolving credit facility in an attempt to get a grip on its ailing finances.
