Insolvency service pays £42m to almost 10,000 Wilko staff, post-collapse
The Insolvency Service has distributed £42m to nearly 10,000 former Wilko staff as compensation for redundancy and statutory notice pay following the collapse of the 93-year-old retailer.
Approximately 9,800 payments have been processed and paid within 24 hours.
The discount hardware and furnishings chain, which faced challenges due to reduced customer spending and outstanding debt to suppliers, entered administration in August with 400 stores across the UK.
The sudden downfall led to the redundancy of nearly 12,500 employees.
Despite initial hopes of finding a buyer, no rescue deal materialised. Administrators sold numerous company assets, with Poundland acquiring up to 71 stores and B&M acquiring up to 51 shops.
It is important to note these deals did not automatically include the staff.
The Insolvency Service, through its redundancy payment service, had anticipated the surge in claims when Wilko entered into administration.
Wilko settled all outstanding wages, holiday pay, overtime and commission owed to former employees.
In the upcoming week, the leader of Wilko is set to testify in front of Members of Parliament, addressing the inquiries regarding the company’s collapse and a £50m deficit in its pension fund.