Hilco rushes to aid of Wilko with further investment

Retail investor Hilco has pumped a further £5m into under pressure Nottinghamshire retailer Wilko to help secure its future.

The new loan comes on top of a £40m cash injection from Hilco at the beginning of the year.

Sky News says the latest investment shows Hilco’s commitment to Wilko as it scrambles to raise cash.

Last week it was revealed that the Wilkinson family was mulling a sale of the business, meaning the retailer would fall out of family hands for the first time since it was established in 1930.

In a statement, Mark Jackson, Wilko chief executive, said: “We’ve been very open that we’re exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist.

“We have a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that delivers significant return, accelerated by the investment needed.

“We are actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery.”

The firm has been working towards a company voluntary arrangement in recent weeks in a move that could mean rent cuts at its 400 stores.