B&M buys 51 Wilko stores in £13m deal
Discount retailer B&M has agreed to buy up for 51 Wilko stores for £13m from the struggling chain’s joint administrators.
B&M European Value Retail said the deal is fully funded from its existing cash reserves. The acquisition is not expected to be conditional on any regulatory clearances.
Some 350 Wilko stores remain at risk of closure. HMV owner Doug Putman is reportedly in talks to rescue the retailer. However, suppliers are calling for debts to be repaid now to guarantee its supply lines.
Discount retailer B&M has agreed to buy up for 51 Wilko stores for £13m from the struggling chain’s joint administrators.
B&M European Value Retail said the deal is fully funded from its existing cash reserves. The acquisition is not expected to be conditional on any regulatory clearances.
Some 350 Wilko stores remain at risk of closure. HMV owner Doug Putman is reportedly in talks to rescue the retailer. However, suppliers are calling for debts to be repaid now to guarantee its supply lines.
Tania Clench, legal director in the restructuring and insolvency team at Cripps, said the uncertainty surrounding Wilko’s remaining stores means “thousands of high street workers still face losing their jobs, and unsecured creditors still don’t know where they stand”.
“The dialogue with Doug Putman appears still to be ongoing but it looks like if that deal is to be reached, fewer stores than originally anticipated will be acquired,” she said.
Clench added: “Anyone who takes on Wilko will need to invest time and cash in bringing the stores and the brand in line with what its rivals are offering – joining up the online and in-store operations, revamping the look of the stores while still safeguarding the shopping experience many look to have at Wilko.
“Wilko’s retail business proposition will need to be clear going forward if the business is to survive and it is clear that Wilko is a very much loved and valued brand by many up and down the country. For this reason, I would not be surprised to see other potential bids for parts of the business coming through and with these, hopefully, jobs being saved.”
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