Private equity deal to save Wilko collapses

Some 1,300 people could lose their jobs with immediate effect after a rescue bid for Wilko from private equity house M2 Capital collapsed this morning (August 31).

Sky News reports that the deal is now off following talks with administrators PwC.

The job expected to be axed are in Wilko’s head office in Worksop and its distribution and support centres.

Administrators will now concentrate on other bids from the likes of Pepco Group and B&M – but these will only save smaller chunks than the M2 deal, which was designed to buy the entire company.

The GMB union and administrators are expected to continue talks today (Thursday).

Wilko employs around 12,500 staff across 400 stores in the UK.