Troubled homeware retailer Wilko has called in the administrators, putting 400 stores and 12,500 jobs at risk.
The retailer has appointed administrators at PwC to oversee the process, after talks with potential rescuers failed. The chain is headquartered in Worksop, Nottinghamshire.
Wilko will initially continue to trade all stores without immediate redundancies. Administrators at PwC said discussions with interested parties continue. Store closures and redundancies will take place if buyers for some or all of the group are not found.
Chief executive Mark Jackson said: “Over the past six months we have been open with all our stakeholders, including our team members, that we have been considering options to accelerate a turnaround plan. 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 business but must concede that, with regret, we have no choice but to take the difficult decision to enter into administration.”
Zelf Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well-loved family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.
“Many high street retailers are facing a number of well-documented challenges and wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.
“Wilko has been a staple of many British high streets for decades. We know that the appointment of administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.
“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”
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