Wilko redundancies suspended as administrators weigh up bids

Wilko will not be proceeding with redundancies while joint administrators, PwC, consider bids to sell, trade union, GMB, has said.

The household goods retailer fell into administration earlier this month after ongoing cash flow challenges. Wilko employs around 12,500 across its 400 stores, head office and distribution centres; around 40 jobs have been at risk at the retailer’s Stockport location at Stockport Retail Park (formerly the Peel Centre).

Trade union, GMB, which is representing Wilko colleagues, met with joint administrators PwC on Tuesday 29th August to discuss bids made for the discount retailer.

Andy Prendergast, GMB National Secretary said:

“All redundancies at Wilko have been suspended while the administrator considers further bids.

“Whilst this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs.”

Previously PwC had confirmed that interested parties, believed to include rival discount retailers, as well as HMV owner Doug Putman, were preferring to take on only parts of the business, with the future of 200 stores in doubt. The Financial Times has also reported that private equity group, M2 Capital, submitted a bid on Friday 25th August to take on the whole company for £100 million but has criticised PwC’s handling of the bidding process.