Household and garden retail chain Wilko has filed a notice of intention to appoint administrators.
Wilko has approximately 400 stores across the UK, including stores in Ramsgate and Westwood, and employs about 12,000 people.
A sale of the chain had been considered and a £40m credit arrangement with Hilco was made earlier this year.
But now the company has filed the notice of the appointment of administrators.
Wilko CEO Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI.
“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible. We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.
“We’re a £1.2bn turnover business with strong presence on UK high streets through our 400 stores, online at wilko.com and through our great value Wilko own brand products, serving local communities with their everyday household and garden needs for over 90 years.
“That said, while we’ll continue to progress these indicative offers, without the surety of a recapitalisation being able to be completed within the necessary time frame and given the cash position, we’ve been left with no choice but to take this action.”
Andy Prendergast, GMB Union National Secretary, said: “This is extremely concerning but we remain hopeful that a buyer can be found.
“Wilko’s staff deserve reassurance that their jobs are safe. We hope this is the number one priority going forward.”
The business was founded in Leicester in 1930 by James Kemsey Wilkinson and remains in the ownership of the founding Wilkinson family.
The business traded under the Wilkinson name until 2014, when it rebranded as Wilko.
Another victim of online shopping and companies trying to save money on premises rentals staffing and other factors this wouldn’t happen if people get out of there cars and shop locally companies are trying to stop customers using cash that’s important to any business my local Morrisons in Margate have introduced card only self service tills this has been tried in EU supermarkets and failed they had to change policy and abandoned this people here need to stop this happening by using cash.
Brian, hardly accurate. Wilco have their own online presence, and cash isn’t relevant. It’s 13 years of Tory austerity leaving people with no money to buy stuff. When will people wake up to the fact that the wealthy (who’ve seen staggering pay rises) don’t buy locally (or even nationally), but the poorer paid are the ones who shop locally and support local businesses.
‘13 years of Tory austerity’ are you not forgetting the first five years the Lib Dem’s were also in government?
The use of cash has nothing to do with the failure of a national chain. Lots of competition between Wilko and Poundland, Home Bargains etc. A sad loss for the high street but no longer as cheap as it used to be.
Thanks to the Conservatives who are excellent at helping businesses to fail.
Was it thanks to the Labour Party & Gordon Brown when Woolworths entered administration in January 2009?
That was due to an international banking crash Mr Brown, started by an American bank when its Ponzi scheme failed! Nothing to do with the Labour Government.
Bank interest rates at a 15 year high, Wilco will be one of many to follow. When are we going to hear that Nigel Farage / Boris Johnson / professor Mogg / The “Lady” Moane PPE scandal.
Are going to face justice for all the line, deceit and corruption????
that will be the final nail in the coffin for ramsgate if that goes , and still people vote for the tories
I agree there will still be some twits who will still vote for these bunch off CLOWNS.
This is bad news. You can buy even cheaper at pound shops but the quality is worse. People dont have money so dont spend it. Also wake to the reality that buying extra cheap means buying twice or even more.
Do you know what would be really nice?
That idiots don’t keep making silly comments to team members. Imagine how you would be feeling? Show some compassion.
If your met with no comment when asking silly questions, don’t be too offended!!
I BLAME BREXIT FOR ALL THIS MESS THE COUNTRY IS IN-THANK U VERY MUCH NIGEL FARAGE AND BORIS JOHNSON WHO U HELPED GET BACK IN 2019-COST OFF LIVING CRISIS PEOPLE ARE NOW WORSE OFF-U ARE NOTHING BUT A BUNCH OFF CLOWNS WHO SCAMMED US.
I REALLY FEEL THOSE PEOPLE WHOSE JOBS NOW AT STAKE.
Such a shame, lovely staff work at the Ramsgate store.
The staff at the ramsgate store are really helpful and make it a great place to shop, but the chain, even if saved, probably can’t sustain two stores in such close proximity (ramsgate & wwx).
Just returned from Wilko, lots of empty shelves, and nothing I could buy! I wanted printer paper, water filters, and plastic spray bottles, none there, all gone! The store seemed busy though, hope it doesn’t close. There have been reports they can’t pay their suppliers, so thats probably why empty shelves!