The administrators of Wilko have confirmed that jobs will be lost and stores closed after failing to find a buyer for the entire business. The chain, which entered administration earlier this month, employs 12,500 people across 400 stores.
PwC, the appointed administrators, stated that while discussions continue with parties interested in buying parts of the business, there is no interest in acquiring the whole group. This makes redundancies and store closures likely, and employee representatives have been updated.
In the immediate term, all stores remain open and trading, with staff continuing to be paid. However, the GMB union warned that the majority of stores could close within weeks after a purchase fell through, expecting significant job losses.
Wilko, founded in Leicester in 1930, has struggled with losses and cash shortages. It faced stiff competition from rivals like B&M, Poundland, The Range, and Home Bargains, as the cost of living crisis drove shoppers to seek bargains. Its high street locations also became a liability as customers shifted to retail parks.
Professor Sarah Montano of the University of Birmingham said Wilko's collapse was unsurprising, noting it had failed to keep up with competitors. The GMB union pledged to fight for members' entitlements.
