B&M deal to save up to 51 Wilko stores from closure

Discount retailer B&M has agreed a £13 million deal to take on up to 51 stores from household goods retailer, Wilko, which entered administration last month.

Details of the stores B&M is set to take over have not been announced, though they are unlikely to include those in locations where the retailer has an existing presence.

B&M was understood to be among the businesses interested in taking on part of the East Midlands-based retailer. Joint administrators, PwC, had previously announced in August it believed redundancies were likely as no parties had come forward that were interested in taking on the entire Wilko business, only parts. Sky News has also reported that HMV-owner, Doug Putman, is in talks to take on around 200 stores, a reduction in his initial bid. Other rival retailers also believed to be in talks with administrators over a partial purchase include The Range and Poundland owner, Pepco.

Cash flow challenges at Wilko forced the chain into administration on 10th August, putting around 12,000 jobs at risk, including around 40 in Stockport. The first 269 redundancies were announced by PwC on Thursday 30th August at the business’ Support Centre in Worksop, Nottinghamshire, with further job losses to be confirmed at distribution centres in Worksop and Newport, which employ over 1,200 staff. Stores, however, remain open.

Commenting on the announcement of the first redundancies, PwC’s Jane Steer, joint administrator, said:

“It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.  

“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect. We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus and other agencies.”