Leicester retail firm Wilko on brink of administration as 12,000 jobs at risk

[Daggers]

48 minutes ago, FoxesDeb said:

You've never been in a Wilkinson? Used to be on Newland Street in Kettering years ago, no idea if it's still there.

 

Great for toiletries, household stuff, gardening things, homeware, lots really and it will be a shame to see it go.

Never. But then I avoid town centres and shops like the plague. 

[FoxesDeb]

2 minutes ago, Daggers said:

Never. But then I avoid town centres and shops like the plague. 

Me too now, but I was a mere youth in my Kettering days 

[Tommy G]

Looks like PwC are being appointed today as administrators

[Spudulike]

Perhaps there should be a reverse of the TikTok mass looting in Oxford Street where people can gather on mass and put stuff back in. 

[davieG]

Merc  https://www.leicestermercury.co.uk/news/uk-world-news/wilko-collapses-administration-puts-12000-8667380

 

Wilko collapses into administration putting 12,000 jobs at risk
The chain, which began as Wilkinson's in Leicester in 1930, has hundreds of stores across the UK

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11
NEWS
ByCorey Bedford
10:42, 10 AUG 2023UPDATED11:20, 10 AUG 2023

Homeware chain Wilko has collapsed into administration and puts 12,000 jobs at risk. The chain, which has more than 400 stores across the UK, was attempting last-minute rescue talks to avoid administration prior to the 10-day grace period granted from creditors ended today.

However, the Wilkinson family, which still owns the chain, has been unable to secure additional funding from investors to avoid administration. Wilko was founded as Wilkinson's in Leicester in 1930 before expanding across the UK, rebranding as Wilko in 2014.

The company stopped home deliveries on Wednesday as it attempted to secure funding. The chain lost money following the surge of competition from stores such as Home Bargains, B&M and The Range. The chief executive of Wilko said the retailer was left with “no choice” but to enter into administration after leaving “no stone unturned” in efforts to revive the business.

 

In an open letter, boss Mark Jackson said: “Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.

“We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.

Wilko will now work with administrators to find outside investment or buyers for the business - otherwise running the risk of disappearing from the high street altogether
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”

Wilko is now at the behest of administrators and outside investors, who can opt to buy any of the shops or parts of the business out of administration. If no buyers or investors are found, Wilko risks becoming the biggest high street casualty of 2023.

The GMB union said the collapse was "entirely avoidable". National officer Nadine Houghton said: "GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity".

For years, Wilko was the go-to place for shoppers in need of just about anything one could think of for the home - from its highly-rated paint to washing powder, shampoo, garden essentials, homeware, DIY supplies, kitchenware, pet food and even pick'n'mix.

But in recent years, Wilko has been struggling. Like most businesses, it was negatively impacted by the coronavirus pandemic and failed to get its footing back fully when the high street returned to normal. This was exacerbated by the struggle to get stock from overseas, as well as the cost of living crisis leading to increased inflation rates for the chain's debts.

In its 2021 trading year, Wilko saw a pre-tax profit of £5.5 million turn to losses just shy of £39 million, with the chain then agreeing a £40 million loan from restructuring specialist Hilco. Earlier this year, the company hired advisers from PwC, one of the UK's biggest accountancy firms, to try and find a buyer and secure fresh funding for the company so Wilko could continue trading, while also announcing the cutting of 400 jobs to reduce costs.

The chain has also closed a number of its stores, too, including the branch on Narborough Road - which was the company's oldest still-running store in the company's 93 year history. Although the business has been struggling for some time, Wilko announcing its intentions to appoint administrators showed just how much trouble the chain was in.

This gave Wilko 10 days to find secure a rescue, however it was unable to strike a deal within that timeframe. Its future is now dependent on investors coming into the business or rescuing parts of it to guarantee as many jobs as possible are saved.

[Filbert_Ross]

On 03/08/2023 at 15:45, stripeyfox said:

never knew they were a Leicester company

 

Same

[Wymsey]

On 03/08/2023 at 15:45, stripeyfox said:

never knew they were a Leicester company

 

 

3 minutes ago, Filbert_Ross said:

Same

I did.

 

I know the founder of Dunelm started up the company via his own market stall with his wife at Leicester Market after he left Wilkinson after falling out with the manager there.

Edited 10 August 2023 by Wymsey

[Dr The Singh]

[RonnieTodger]

Sad really, I hate going into B&M and Home Bargains. 

[davieG]

B&M has agreed to buy up to 51 Wilko. The news comes hours after the first redundancies at the Leicester -founded firm were made, as administrators continue to look to save the historic brand.

The deal, which is worth a reported £13 million, will see Wilko’s discount chain rival B&M buy up to 51 Wilko stores from administrators PwC. Locations are to be announced.

 

News of the deal comes after their initial bid to buy the whole business fell through last week. Talks are ongoing with other interested parties, including the owner of HMV, Doug Putman, to see if other under-threat stores can now be saved.

In a statement, B&M European Value Retail said: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances. An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”

Since Wilko fell into administration last month, talks with a number of potential saviours have taken place. Canadian businessman Mr Putman looks best placed to save the majority of the business as things stand, with his last-minute bid potentially saving hundreds of Wilko’s stores - as well as around 8,000 of the under threat 12,500 jobs with the firm.

 

 

https://www.leicestermercury.co.uk/news/leicester-news/bm-save-up-51-wilko-8727739

[Tuna]

Never bother with B&M and Home Bargains, Boyes and Yorkie trading is where the action is!

[The Syrup]

2 hours ago, Tuna said:

Never bother with B&M and Home Bargains, Boyes and Yorkie trading is where the action is!

Yorkshire Trading is a great shop. Regular shopper in their Melton branch. Not much it doesn't sell, and cheaper plus far more choice than Wilko. 

[Wymsey]

On 10/08/2023 at 20:52, RonnieTodger said:

Sad really, I hate going into B&M and Home Bargains. 

Same.

 

Most of the goods are either tacky or trivial, silly stuff.

 

At least Wilko was very largely practical products.

[Fox92]

https://www.theguardian.com/business/2023/sep/05/more-than-1300-jobs-to-go-as-wilko-axes-52-stores

 

Quote

 

The administrators say the following stores will close on Tuesday 12 September:

    Acton,

    Aldershot,

    Barking,

    Bishop Auckland,

    Bletchley FF,

    Brownhills,

    Camberley,

    Cardiff Bay Retail Park,

    Falmouth,

    Harpurhey,

    Irvine,

    Liverpool Edge Lane,

    Llandudno,

    Lowestoft,

    Morley,

    Nelson,

    Port Talbot,

    Putney,

    Stafford,

    Tunbridge Wells,

    Wakefield,

    Weston-super-Mare,

    Westwood Cross,

    Winsford.

The following stores will close on Thursday 14 September:

    Ashford,

    Avonmeads,

    Banbury,

    Barrow in Furness,

    Basildon,

    Belle Vale,

    Burnley (Relocation),

    Clydebank,

    Cortonwood,

    Dagenham,

    Dewsbury,

    Eccles,

    Folkestone,

    Great Yarmouth,

    Hammersmith,

    Huddersfield,

    Morriston,

    New Malden,

    North Shields,

    Queen Street Cardiff,

    Rhyl,

    Southampton-West Quay,

    St Austell,

    Stockport,

    Truro,

    Uttoxeter,

    Walsall,

    Woking

 

 

[davieG]

https://www.bbc.co.uk/news/business-66800612

 

By Michael Race

Business reporter, BBC News

The Range has agreed a deal to buy the Wilko brand after a rescue deal for the wider business fell through.

The agreement means it will own Wilko's website and could choose to stock and sell some of its products.

Wilko's administrators said 36 workers would transfer over to The Range and it expected the online operations would restart in early October.

However, the deal will not prevent Wilko shops disappearing from Britain's High Streets.

Thousands of staff are likely to lose their jobs as a result of the closures.

Wilko's rivals have been snapping up parts of the company since administrators were unable to find a buyer for the whole business.

The company, founded in 1930 and a stalwart of High Streets up and down the country, fell into administration in August as it struggled with sharp losses and a cash shortage.

The billionaire owner of HMV, Doug Putman, initially hoped to keep as many as 300 Wilko shops open, but his bid failed and no other bidders were interested in running the shops under the Wilko name.

On Tuesday, the owner of Poundland agreed a deal to take on the leases of about 71 Wilko shops, which will reopen under its own brand.

Another rival B&M has also agreed to buy 51 of Wilko's shops in a £13m deal.

However, redundancies are still likely for most of the 12,500 staff at the family-owned business.

So far, 1,016 redundancies have been announced at stores that are closing.

Another 299 redundancies have taken place at its two distribution centres in Worksop and Newport, which will close on Friday next week, while more than 260 redundancies have been made at its support centre.

[davieG]

https://www.leicestermercury.co.uk/news/local-news/full-list-wilko-stores-reopening-8797399

 

Full list of Wilko stores reopening as Poundlands

 

Aberdare, Wales
Alfreton, Derbyshire
Alnwick, Northumberland
Altrincham, Greater Manchester
Ammanford, Carmarthenshire
Ashby, North Lincolnshire
Bedminster, Bristol
Beeston, Nottinghamshire
Bicester, Oxfordshire
Bishop Stortford, Hertfordshire
Bletchley, Milton Keynes
Bolton, Greater Manchester
Brentwood, Essex
Brigg, North Lincolnshire
Cambridge, Cambridgeshire
Chepstow, Wales
Coalville, Leicestershire
Cramlington, Northumberland
Droitwich, Worcestershire
Edmonton Green, Greater London
Ellesmere Port, Cheshire
Ferndown, Dorset
Gateshead, Tyne and Wear
Grays, Essex
Greenock, Inverclyde
Grimsby, North Lincolnshire
Havant, Hampshire
Hayes, Middlesex
Headingley, West Yorkshire
Hessle Road, Hull, East Yorkshire
Hillsborough, Sheffield, South Yorkshire
Hitchin, Hertfordshire
Killingworth, North Tyneside
Kimberley, Nottinghamshire
Lee Circle, Leicester
Leek, Staffordshire
Lichfield, Staffordshire
Matlock, Derbyshire
Melton, Leicestershire
Northallerton, North Yorkshire
Orton, Peterborough, Cambridgeshire
Pembroke Dock, Pembrokeshire
Peterlee, County Durham
Pontefract, West Yorkshire
Pontypool, Wales
Redhill, Surrey
Redruth, Cornwall
Ripley, Derbyshire
Rugeley, Staffordshire
Sale, Greater Manchester
Seaham, County Durham
Selly Oak, Birmingham
Shrewsbury Darwin Centre, Shropshire
South Shields, South Tyneside
Stafford, Staffordshire
Stamford, Lincolnshire
Thornaby, North Yorkshire
Wellington, Shropshire
Wembley, West Ealing, London
Wombwell, South Yorkshire
Worcester, Worcestershire
Worksop, Nottinghamshire

[Wymsey]

As a former resident of the town, what's happening to the Syston branch?

@Webbo, @syston_fox, @SystonFox?

Edited 2 October 2023 by Wymsey

[Tuna]

21 minutes ago, Wymsey said:

As a former resident of the town, what's happening to the Syston branch?

Melton one is becoming a poundland, they were stocking it up today.

[syston_fox]

1 hour ago, Wymsey said:

As a former resident of the town, what's happening to the Syston branch?

@Webbo, @syston_fox, @SystonFox?

No idea yet buddy but imagine it will just stay empty for an age. It’s too big of a unit for anyone to do anything with especially with b&m (or whatever it is) in the square. 

[Guest Mee-9]

38 minutes ago, syston_fox said:

No idea yet buddy but imagine it will just stay empty for an age. It’s too big of a unit for anyone to do anything with especially with b&m (or whatever it is) in the square. 

The size of the plot that Wilkos has in Syston as well as the car park, they should create some sort of indoor market/shopping centre with lots of individual stalls and vendors inside. 

[Tommy G]

Ordered a chunk of stuff from Amazon that I'd usually get from Wilko, the Treasury will be delighted.