Wilko to stay open for now in race to rescue 12,000 jobs

Wilko collapsed into administration yesterday after failing to find rescue cash – but will continue to trade for now.

The homeware store said it had ‘no choice’ but to call in administrators, leaving 12,000 jobs at risk.

With around 400 branches nationwide, it is the largest retailer to go out of business since newsagents chain McColl’s closed more than 130 stores last year.

Collapsed: But Wilko said it will continue to trade without any immediate redundancies

Wilko is known for selling affordable products including a garden range and cosmetics but union bosses said it failed to capitalise on consumers who wanted to save money.

Administrator PwC said yesterday: ‘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 store closures and redundancies will follow.’

Chief executive Mark Jackson said bosses had ‘left no stone unturned’ when it came to preserving the business but had run out of time to find a lifeline. 

Although there had been ‘a significant level of interest’ from potential buyers, Mr Jackson said the firm ‘must do what’s best to preserve as many jobs as possible, for as long as is possible’.

Wilko had been in talks with private equity firms including Gordon Brothers, which owns Laura Ashley, and Bensons for Beds owners Alteri. 

Mr Jackson also said a cost-saving plan that was underway would have been able to deliver ‘the most profitable Wilko ever recorded’ within two years.

The high street brand had struggled with rising costs as consumers’ budgets have been restricted by high inflation.

The business was founded by JK Wilkinson in 1930 with a single hardware shop in Leicester. It outlasted the demise of rival retail chain Woolworths after the financial crisis in 2008.

Wilko is the largest retailer to go out of business since newsagents chain McColl’s closed more than 130 stores last year

Despite the statement from Wilko’s boss, union officials slammed the retailer’s management and said the situation was ‘sadly, entirely avoidable’.

Nadine Houghton, national officer at the GMB union, blamed the Wilkinson family for taking millions of pounds out of the business all while staff were ‘accepting pay cuts and cuts to terms and conditions to help the business stay afloat’.

She also hit out at Wilko executives for having failed to appeal to bargain-hunting consumers during the cost of living crisis.

Other discount firms including Aldi, Lidl and B&M have seen more shoppers through their doors this year.

Ms Houghton said: ‘GMB has been told… 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.’

In recent years, the high street has lost household names including Debenhams, Topshop and Mothercare as Britons have turned to online shopping.

This post first appeared on Dailymail.co.uk