UK: WILKO WILL CLOSE ALL ITS STORES, RESULTING IN THE LOSS OF 12500 JOBS

Mon 11 September 2023:

By early October, all 400 outlets of the bankrupt retailer Wilko would shut down, “likely” resulting in the loss of all 12,500 employment at the company according to the GMB.

The union claimed that PwC, the administrators, informed it of the development on Monday morning.

The GMB stated that this indicated it was now “likely” that Wilko would lay off every employee.

It happens at the same time as Doug Putman, the owner of HMV, backed out of an agreement to save the high-street retailer, casting uncertainty on the future of thousands of employment.

GMB union has just concluded a meeing with the administrator. It says both of Wilko’s distribution centres (Worksop and Newport) will close next Friday, that all shops will shut “by early October” and redundancy now likely “for all 12,500 workers”.

— Joel Hills (@ITVJoel) September 11, 2023

The billionaire was understood to be in discussions with PwC, the administrator appointed to oversee the high street chain’s insolvency, to save around 200 Wilko shops.

But in a statement Mr Putman said the deal was now dead as a “stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted”.

“It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern,” he said.

“We had financing in place and received the full support of PwC, Wilko management and staff representatives, which we are deeply thankful for considering what a challenging time it has been for them.”

Wilko entered administration in August, having faced five years of declining turnover as high streets were placed under pressure, not least by the Covid-19 lockdowns.

The company was founded in Leicester with the first shop opening in 1930, and since then has grown to more than 400 stores across the country.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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