Wilko enters administration

Household goods retailer, Wilko, has fallen into administration and putting 12,000 jobs at risk nationwide, including at its Stockport store.

The retailer filed a notice of its intention to appoint administrators on 3rd August, giving it a seven-day reprieve from creditors as it hoped to find a buyer, however Wilko has now appointed PwC as administrators after failing to secure a deal.

First founded in 1930 in Leicester, Wilko has over 400 stores nationwide, primarily in high street and town centre locations, and employs 12,000 staff whose jobs are now at risk. In Stockport, the retailer opened a store at Stockport Retail Park (formerly the Peel Centre) in 2017, where it employs around 40 staff.

Earlier this year, the retailer secured £40 million from restructuring specialist Hilco to address challenges at the firm. In recent years, Wilko has faced increased challenge from competitors, and more recently supply chain problems leading to empty shelves for customers as well as the pressures of inflation. Since late 2022, the retailer has also deferred supplier payments and asked landlords to move rent payments as a result of cash flow problems.

Retail Gazette has reported that the retailer has been in talks with a number of potential buyers, including a rival brand and private equity firms, although Wilko has been unable to secure a deal in time to avoid administration.

In a statement, Mark Jackson, CEO of Wilko, said:

“Over the past six months we’ve been open with all our stakeholders including our team members that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.  We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.

 “I’d like to take this opportunity on behalf of the directors and the Wilkinson family to thank all of our customers and our hardworking team members across our stores, logistics and support centre who remained loyal to Wilko.  It’s been an honour to have worked alongside you all as we fought to realise and to maximise the significant opportunities that existed to re-establish a profitable Wilko.”

Despite the announcement, Wilko stores and its online store remain open for customers; however, it has paused home delivery as of 9th August.