Wilko bidders complain of ‘obstacles and pressures’

Wilko’s store closures have been put on hold as its administrators weigh up rescue bids. PwC has abandoned its timeline for deciding the collapsed retailer’s future, after receiving a £90m bid from M2 Capital at the weekend. The private equity firm said PwC had been “putting a lot of obstacles and pressures” on the firm, and had been reluctant to hand over relevant information on funding. It questioned whether the process was “fair and transparent”. Robert Mantse, chair of M2 and previously a PwC employee, said the private equity firm had to submit a final offer and proof of financing on a Bank Holiday in the UK on Monday, without being given access to a secure data room to examine Wilko’s finances. PwC has countered by accusing M2 Capital of breaching a non-disclosure agreement by providing details of the bid to the GMB union and journalists. There have also been questions raised over whether M2 has the required funds available to buy the 400-store Wilko in its entirety, after it did not provide further details in response to queries from the administrators. Doug Putman, owner of HMV in the UK and Toys R Us in Canada, is understood to have increased his bid on Friday’s deadline, offering to take on up to 350 of Wilko’s 400 stores and ensure the main creditors – led by restructuring specialist Hilco – were paid. A previous bid from Putman would have involved saving 200 stores. As administrator, PwC has an obligation to try to protect the interests of creditors, including Hilco, which is owed £40m. Rival bargain retailers – such as Poundland, Home Bargains, Primark and B&M – have made bids for selected sites. The Times (£)The FT (£)The Guardian