The Wilko chain has become the latest UK retailer to collapse, after it confirmed that it had entered into administration as of this morning.
The 408-store homewares retailer said it had been unable to raise emergency funds to keep its operations going. Last week, the chain announced that it was looking to raise funds, giving itself 10 days until it had to appoint administrators.
CEO Mark Jackson said the Wilko management had “left no stone unturned” to save the chain, but “must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.” A report in the Guardian said that Gordon Brothers, Hilco, and Alteri had expressed an interest, but enthusiasm for a rescue bid remained low.
The announcement came less than a day after the chain suspended home deliveries, without giving a reason. As of Wednesday, customers ordering online were told that home deliveries were “temporarily unavailable”, although click-and-collect was still available.
The GMB union criticised the move, saying the collapse was “entirely avoidable”. National officer Nadine Houghton said: “GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity”.
NAM Implications:
- At last, some of the uncertainty removed…
- …as Wilko took the inevitable step into administration this morning.
- What is certain, is that a greatly diminished Wilko will continue to trade.
- via a significantly reduced retail estate…
- Until a willing buyer is satisfied with the size of the package.
- Time to reduce your expectations appropriately.
