WILKO shoppers are all saying the same thing as the future of the popular chain looks uncertain.
Fans of the store are taking to social media after the shock news that the popular discount store is on the brink of collapse.
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The bargain retailer filed a notice of intent to appoint administrators yesterday, following reports that the business was exploring the possibility of a sale.
The high street chain has 400 shops and employs around 12,000 people.
It continues to trade as normal for the time being but it is unsure what will happen in the future.
Fans of the discounter have been taking to social media with their thoughts on the possibility of facing a high street without the beloved Wilko.
One Twitter user said: “How can Wilko be going under when I buy so many bits? Where is the money from my bits going?”
Another person commented: “I am leaving the UK if I can’t buy Wilko cleaning products.”
While others were not so heartbroken and looking forward to what bargains they might get should the worst happen and the stores close down.
One person said: “The silver lining is the Wilko close-down sale will be one for the ages.
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“Will need a seven-seater for that.”
And another commented: “So when in the Wilko clearance sale?”
While another added: “You’re in her DMs, I am at the Wilko’s sale getting some sweet deals.”
It is important to note that Wilko has just filed a notice of intent to appoint administrators, and is yet to enter into administration.
Wilko chief executive Mark Jackson confirmed there has been “significant levels of interest” but that the business has not yet received an offer.
He added that they will “continue to progress discussions with interested parties” with the aim of “preserving the business.”
A notice of intention gives Wilko a ten-day window to secure a deal while protected from action by other creditors.
What will happen if Wilko does go into administration?
If a buyer cannot be found and Wilko does go into administration this means all control of the business is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
It doesn’t necessarily mean the end of the business.
Instead, administrators will try to help a company find ways to repay debts or solve its cash flow problems.
Administration can last anywhere from a few weeks to up to a year or more.
But if the administration process can’t rescue the company or find a new owner, this usually leads to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
Wilko is yet to confirm exactly what will happen to all stores and 12,000 jobs.
It comes after the company announced plans to close more than a dozen of its shops in January last year.
Then in February 2023, it revealed it planned to cut over 400 jobs, including both store and head office roles.
Wilko, like many other high street retailers, is said to have seen a big drop in footfall and has “stopped performing to its full potential”.
Retailers have been feeling the pinch since the pandemic while shoppers are cutting back on spending due to soaring inflation.
High energy costs and a shift to shopping online after the pandemic are also taking a toll and many high street shops have struggled to keep going.
Numerous high street brands have collapsed into administration in the last 12 months.
From the Scottish clothing brand M&Co to wellies store Joules, a number of familiar brands went bust in 2022.
Major burger chain Byron Burger fell into administration in January and immediately shut all nine restaurants.
Paperchase then collapsed into administration at the end of the same month and all 106 stores have since closed for good.
