Hundreds of Wilco stores closed after rescue failure
After unsuccessful negotiations for a rescue deal, Wilco is faced with the closure of hundreds of its stores, resulting in the unfortunate loss of jobs for thousands of employees.
This month, the 93-year-old chain unexpectedly entered administration, jeopardizing the future of 400 stores and 12,000 jobs.
Since last week, PwC’s administrators have been evaluating potential rescue bids. However, they announced last night that no offer has been made for the entire group.
This month, the long-standing high street chain, aged 93, faced administration, which endangered the future of 400 stores and jeopardized the employment of 12,000 individuals.
PwC maintained that talks would persist with potential buyers who express interest in acquiring portions of the business, thereby raising optimism that certain locations and employees might be preserved.
Jan Steuer, Zelf Hussain, and Edward Williams, the joint administrators at PwC, have stated that although discussions are currently underway with potential buyers for certain parts of the business, it is evident that the interest being expressed does not revolve around acquiring the entire group.
Regrettably, there is a high probability of future job cuts and store closures. Consequently, it is imperative to inform and update employee representatives accordingly.
For the time being, all stores will stay open, normal business operations will continue, and employees will receive their regular pay. It is important to note that despite rumors, there are currently no intentions of closing any stores in the upcoming week.
It is believed that potential buyers may include B&M European Value Retail, Poundland, The Range, and Home Bargains, who are considered as competitors.
Another disappointing day for the High Street is marked by Wilco’s downfall, which comes after newsagent McCall’s collapse last year, only to be saved by Morrison.
Due to the rise of online shopping and the repercussions of lockdown, prominent retailers like Debenhams, the Arcadia Group (owner of Topshop), and Mothercare have vanished from the high street in recent years.
Sophie Lund-Yates at Hargreaves Lansdowne expressed her concern, stating that the loss is a significant setback for the High Street. She sadly noted that it also serves as a poignant reminder of the demise of Woolworths, a brand and chain that holds great historical value and is deeply cherished by many.
In the early 1930s, James Kemsey Wilkinson established a hardware store in Leicester, originally named Wilkinson. However, in the early 2010s, the name was shortened to Wilco.
Throughout the years, the family-owned company has broadened its assortment to encompass DIY products, gardening accessories, and general household items. However, it has encountered intense competition from budget-friendly competitors like B&M, The Range, and Home Bargains.
Andy Prendergast, the national secretary of GMB, stated that the GMB union will persist in providing support to its members during this process. Additionally, they will strive to guarantee that members are consulted in compliance with the law and that they receive their entitled remuneration in full.
GMB will remember the inefficiency that caused its downfall and the dividends given to wealthy individuals who jeopardized your employment.
The decision made by the owners to repay £77 million to owners and former shareholders over the past ten years has ignited anger among trade unionists and workers. The chain, which was under the control of the founder’s descendants, has caused this discontent.
Jonathan Reynolds, Labour’s shadow business secretary, expressed his concern over the distressing news, stating that it is highly probable to result in the closure of stores nationwide.
Source: www.dailymail.co.uk
