Discount retailers’ Wilko rescue deal on a knife edge

The deal that would see Poundland and B&M sweep up over 100 stores from failed Worksop discount retailer Wilko could be in jeopardy.

According to reports in The Times, Poundland and B&M are trying to negotiate better deals with the landlords of the units.

B&M and Poundland struck deals with Wilko administrators PwC to buy 51 and 71 former Wilko stores respectively.

Poundland is set to open in 10 former Wilko stores this weekend, but there remain 100 formal applications between both retailers that are yet to be submitted, says the report.

If either deal falls through, jobs will be lost and PwC returns to creditors will be even smaller than it already promises to be. The administrator published a statement of affairs last week that said unsecured creditors would only receive 4p for every pound they are owed.

A PwC spokesperson told The Times: “The deals that have been concluded provide the purchasers with the opportunity to take on or agree new leases at the relevant vacant sites, subject to the outcome of their discussions with the relevant landlords.

“We hope that agreements will be reached as soon as possible and that new Poundland and B&M stores will soon be open to customers.”