One of the potential deals that promised to save the Wilko brand and most of its stores has fallen through after the bidder failed to file paperwork in time.
At the end of last week, private equity firm M2 Capital made a £90m bid for the failed retailer, pledging to retain all employees’ jobs for two years. However, reports today said it had been unable to provide proof of funding by a deadline of 5pm on Wednesday set by administrator PwC.
M2 Capital chairman Robert Mantse told the BBC that his dealings with the administrators had been a “circus” and accused PwC of being “beyond unfair”, with the firm considering legal action.
However, it is understood that PwC is still in talks with HMV owner Doug Putman about a deal. He is said to want to rescue the brand and about half of the 400 Wilko stores.
PwC had paused redundancy plans for the 12,000+ staff whilst talks were taking place. However, the process was expected to resume today, with the retailer’s head office, distribution and support centre workers expected to be the first to go.
PwC has since confirmed that 269 jobs at the chain’s support centre in Worksop and 14 others from a subsidiary firm of Wilko would be cut at the close of business on 4 September.
Further redundancies at its two distribution centres in Worksop and Newport are to begin from early next week, but numbers have not been confirmed.
PwC noted that all of the chain’s stores are currently trading and remain open and that “discussions continue with those interested in buying parts of the business”.
There have been reports that Pepco Group is eyeing around 100 Wilko stores for its Poundland chain. B&M is also believed to be in negotiations to take on between 40 and 50 shops, while other value retailers, including TOFS, have lodged offers to acquire smaller parcels comprising about ten sites.
NAM Implications:
- We still see this as a forward view of 200 stores.
- Divided amongst four retail rivals.
- And staffed to match.
- Otherwise, the numbers don’t add up…
