Wilko to close all stores after rescue talks fail

Wilko will close all of its 408 shops following the collapse of rescue talks between its administrators and HMV owner Doug Putnam. Administrators from PwC, who were appointed on 10 August, said they had “explored all potential opportunities to save the business”. The deal, which would have saved at least 100 of Wilko’s stores and kept it running as a going concern, had received the backing of the retailer’s creditors, including the majority of its landlords. Joint administrator Zelf Hussain said: “Despite the significant and intensive efforts of both ourselves and Putman Investments – the remaining party interested in buying a significant part of the business as a going concern – a transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable.” Putnam had initially said he wanted more than 300 of the stores, but scaled down his ambition as advisers looked over the numbers. The final blow is thought to have come after Wilko’s suppliers, including Unilever and Procter & Gamble, said they would cut their supply chains unless their debts were fully paid in advance. All Wilko stores and its two distribution centres will be closed by early October, resulting in the redundancies of more than 10,000 people, with 124 shops closing on, or before, Thursday 21 September. The closure of Wilko’s last distribution centre is expected to take place on 15 September. Its other distribution centre has already closed. PwC said the administrators would continue to “liaise closely with the government, agencies, unions and large employers to help create avenues to further employment opportunities for staff”. This included talking to the purchasers of any of the stores, who may reopen them under different brands. Hussain said plans to save some of the sites through individual deals or portfolios were still in negotiations. “We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days,” he said. Rival retailer B&M has already paid £13m for 51 stores. Home Bargains is believed to want some sites, and Poundland is said to be close to agreeing a deal for around 70 shops. The Range is in talks for the Wilko brand and website. The following 38 stores will close on Sunday 17 September: Accrington, Ashington, Blackwood, Bognor Regis, Bradford, Bury St Edmunds, Coalville, Crawley, Droylsden, Ellesmere Port, Falkirk, Ferndown, Hanley, Humberstone, Huyton, Kensington High Street, Kings Heath, Lakeside, Leigh, Letchworth, Maidenhead, Market Harborough, Melton Mowbray, Newport, Orpington, Pontefract, Pontypool, Redruth, Rugeley, Shirley, Southport, Sovereign Harbour, Torquay, Wimbledon, Wombwell, Woodhouse Lane – Leeds, Worcester, Workington. The following 38 stores will close on Tuesday 19 September: Aberdare, Alfreton, Ashby, Barnstaple, Belper, Beverley, Blackheath, Brigg, Byker, Chepstow, Clifton Nottingham, Colindale, Devizes, Didcot, Earlestown, East Ham, Great Bridge, Greenbridge, Grimsby, Hessle Road – Hull, Jarrow, Kimberley, Leighton Buzzard, Long Eaton, Maesteg, Matlock, Middleton, Newton Abbot, Redcar, Ripley, Seaham, Sherwood, Stamford, Stevenage, Swanley, Tamworth, Wrexham, Wythenshawe. The following 48 stores will close on Thursday 21 September: Allestree, Andover, Bedford, Beeston, Bicester, Bloxwich, Bolton, Bordon, Bransholme, Bridgend, Bury, Carlton, Clacton on Sea, Cramlington, Crewe, Cwmbran, Cyfarthfa, Denton, Driffield, Droitwich, Edmonton Green, Farnborough, Fort Kinnaird, Fulham, Gateshead, Gorleston, Grays, Greenock, Havant, Hereford, Hillsborough, Holyhead, Newton Aycliffe, Northampton, Orton, Parc Trostre Llanelli, Penge, Peterlee, Pwllheli, Shrewsbury, Slough, Swindon, Tamworth Retail Park, Taunton, Walton on Thames, Wheatley Retail Park, Wigan, Wolverhampton. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Image © Maureen McLean/Shutterstock