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

The newly-appointed administrators to 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.”

The retailer has five stores in Bristol, and one in Kingswood.

Metro mayor Dan Norris said packages of support from his Mayoral Combined Authority are available to help workers in case they are made redundant.

He pointed to his hands-on training courses for high-demand sectors, as well as other careers programmes which help locals including those who have lost their jobs – to help them find a new role in a similar or new sector.

He said: “This is really concerning news, not least for the hundreds workers who will now be worrying about what this means for them, and the fact they are now at risk of losing their jobs in the middle of a really tough and frightening cost-of-living crisis.

“I hope a solution can be found to keep as many jobs and stores safe as possible. And help is at hand from my Mayoral Combined Authority to help locals made redundant to find new job opportunities.

“There are plenty of jobs out there – in retail, but also in other sectors with employers who would really value workers with these types of skillsets. My Mayoral Combined Authority stands ready to help affected workers have access to the services and resources they need to find a good-quality, unionized roles as soon as possible.”