Wilko stores to remain open as administrators race to find a buyer

The newly-appointed administrators to Nottinghamshire-headquartered retailer Wilko have said that unless a buyer is bought for the firm, it is “inevitable” that store closures and redundancies will follow.

Jane Steer, Zelf Hussain and Edward Williams of PwC have been called in to try and find a buyer for some, or all, of the stricken Wilko business – with the fate of 12,000 staff now in their hands.

The administrators say that Wilko has been hit by “incredibly challenging” trading conditions, both throughout the pandemic and more recently as it has felt the impact of the cost of living crisis, resulting in increasing cashflow pressure and a deterioration in trading.

Initially, Wilko will continue to trade all stores without any immediate redundancies as discussions with interested parties continue. If buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow, said the administrators.

Hussain added: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.

“Many high street retailers are facing a number of well-documented challenges and wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.

“Wilko has been a staple of many British high streets for decades. We know that the appointment of Administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.

“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”