The first Wilko shop closures have started today, with the chain now set to disappear from the high street by early October after a rescue deal for a large chunk of the chain fell through.
It was announced yesterday that Doug Putman, who engineered a turnaround of HMV, had failed to reach an agreement with administrator PwC due to trouble with some key suppliers and concerns his plan would not be able to reduce the failed retailer’s operating costs quicker enough.
PwC subsequently confirmed that the remaining 300 Wilko stores and its distribution centres will shut in the coming weeks. It said that “despite extensive efforts”, it had become clear that “no significant part of the Wilko operations can be rescued” in its current form.
PwC had already sold 51 sites out of the chain’s total of 408 to B&M for £13m and announced 52 closures – 24 of which will shut today, with a further 28 closing on Thursday.
On top of this week’s store closures, Wilko’s distribution centre operations will wind down on 15 September. A further 124 shops will close between 17 and 21 September, with timings for the closure of the remaining stores set to be announced in due course.
Other retailers, including Poundland, The Range, Home Bargains and TOFS, are expected to snap some of the Wilko sites, but all the chain’s 12,500 workers now face redundancy.
NAM Implications:
- i.e. think 200 outlets shared by Wilko’s four rivals.
- End of story, regrettably…
