The majority of Wilko stores are set to close after the business’s attempts to find a buyer failed, according to administrators PwC.
On Wednesday evening, unions were informed by PwC that store closures and job losses were imminent, as efforts to secure a buyer for the collapsed business proved unsuccessful.
GMB, which represents over 4,000 Wilko employees, was notified that there is no longer any hope of saving the company.
The union anticipates that redundancies will commence this week for employees across the 400 Wilko stores and its call centres. Wilko currently employs approximately 12,000 staff in the UK.
PwC’s administrators for Wilko, Jane Steer, Zelf Hussain, and Edward Williams, stated together: “While discussions are ongoing with potential buyers interested in acquiring parts of the business, it has become evident that this interest is not focused on the entire Group.
Therefore, it is regrettable that there will likely be redundancies and store closures in the future. Employee representatives have been informed of this development today,” they added.
The administrators emphasised their commitment to supporting staff during this uncertain period, collaborating closely with the government, JobCentre Plus, unions, and major employers to maximize opportunities for a swift return to work for redundant employees.
There remains a possibility that a buyer may emerge for certain individual stores or groups of stores.
However, PwC’s announcement effectively marks the end of any hope for a successful rescue of the entire business as a trading entity.
GMB national secretary Andy Prendergast vowed to continue supporting members throughout this process, advocating for lawful consultation and ensuring entitlement to full compensation.
“We will fight to hold Wilko bosses accountable because our members deserve better,” he said.
Wilko was forced into administration earlier this month due to mounting debts.
B&M, Poundland, The Range, and Home Bargains had all reportedly expressed interest in acquiring at least part of the business.
Wilko faced significant challenges during the pandemic, grappling with supply issues that severely impacted its ability to obtain sufficient stock.
The family-owned chain was established by James Kemsey Wilkinson in Leicester in 1930.
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