HMV tycoon’s last-ditch bid to save Wilko

The billionaire behind HMV could save up to 4,000 jobs at collapsed retailer Wilko in an eleventh-hour rescue bid.

Doug Putman, 39, who owns the British CD seller and Canada’s largest toy business Toys R Us, was last night in talks with administrators to buy part of the business.

He has proposed to keep around 200 of its 400 shops and between 3,000 and 4,000 of its 12,000 staff.

The deal would also mean the survival of the Wilko brand. Administrators are set to work through the weekend to analyse a final bid from Putman, in order to secure the best outcome for creditors and staff.

The 93-year-old chain tumbled into administration this month and administrators at PwC have been poring over potential rescue bids.

Rescue bid: Doug Putman has proposed to keep around 200 of Wilko’s 400 shops and between 3,000 and 4,000 of its 12,000 staff

On Wednesday they said there were no offers for the entire group but insisted discussions continue ‘with those interested in buying parts of the business’. 

Although there was some speculation that a stock liquidation, which would see Wilko’s inventory sold for a huge discount, was the preferred outcome by those looking at bids, administrators insisted that talks with buyers continued.

A PwC spokesman said: ‘Since our appointment we have worked relentlessly to secure a sale of the business, and talks are continuing with a number of parties.

‘As administrators we’re intent on achieving the best outcome for everyone involved while preserving as many jobs as possible and adhering to our statutory duty to act in the best interests of the creditors as a whole.’

If the Putman bid is rejected, some stores could still be sold to other bidders.

Potential buyers are thought to include B&M European Value Retail, Poundland, The Range and Home Bargains.

‘This is a chapter in UK retail that everyone hopes will have a somewhat happy ending, but the lack of any news suggests negotiations are tough,’ said Danni Hewson, head of financial analysis at AJ Bell.

Wilko was founded in 1930 as a hardware shop in Leicester by James Kemsey Wilkinson, and was known as Wilkinson before becoming ‘Wilko’ in the early 2010s.

Over the years the family-owned firm expanded its range to include DIY products, gardening wares and general home goods. But it has faced fierce competition from cut-price competitors and online rivals like Amazon.

It struggled in the face of lockdowns to emerge from the pandemic only to be battered by rampant inflation.

The collapse of Wilko marks another dark day for the High Street following the near-disappearance of newsagent McColl’s last year before its rescue by Morrisons.

In recent years, Britain’s high streets have lost popular names such as Debenhams, Topshop owner Arcadia group and Mothercare.

This post first appeared on Dailymail.co.uk