- Potential Acquisition of Wilko Stores by Pepco and B&M
- Majority of Wilko Stores Likely to Close Soon
- Uncertain Future for Thousands of Retail Jobs Amid Wilko’s Struggles
Pepco Group and B&M European Value Retail are in discussions to acquire approximately 150 of Wilko’s 400 stores.
On Wednesday evening, union officials warned that the majority of Wilko stores were likely to close within days, heightening fears for the future of thousands of retail positions at the struggling chain.
PricewaterhouseCoopers (PwC) is in advanced talks to split the 400-store business, with Pepco Group acquiring 100 outlets.
According to an informant, London-listed discount retailer B&M European Retail is also negotiating to buy 40–50 outlets.
TOFS, owned by Duke Street, and other value merchants have bid for eleven smaller properties.
Retail sector sources expect PwC to announce sale agreements with several bidders on Thursday.
Even if agreements are reached with Pepco, B&M, and TOFS, over 200 Wilko stores will probably be permanently closed.
This could cost Wilko over 6,000 jobs, including those at its headquarters, but the final number could be far higher.
In a statement that anticipated an announcement from PwC, the GMB Union stated: “In a meeting with administrators today, the GMB Union was informed that there is no longer any chance of saving the bulk of the business.
This means that layoffs of retail and call center employees will commence the following week.
Some stores may be acquired, either individually or as part of larger bundles, but substantial job losses are anticipated.
A larger arrangement for half of Wilko’s stores with an undisclosed bidder has a slim probability of being rescued.
Andy Prendergast, GMB’s national secretary, informed Wilko’s 12,500-strong workforce that the union would “continue to support members throughout this process and will fight to ensure members are consulted by the law and that you receive every penny to which you are entitled.”
“We will fight to ensure that Wilko’s executives are held accountable because our members deserve so much better.”
“GMB will not forget the incompetence that precipitated this debacle, nor will we forget the dividends paid to the millionaires who gambled your jobs on their whims.”
In response to the GMB statement, Labour’s shadow business secretary, Jonathan Reynolds, stated, “This is devastating news that will likely result in store closures across the country. My thoughts and prayers are with Wilko employees and their families as they cope with this devastating news.
“After 13 years of Conservative economic failure, shuttered stores and struggling main arteries have sadly become the norm.
“Labour has a strategy for our town centers. By reforming business rates, cracking down on anti-social behavior, and putting an end to empty premises, we will address the obstacles holding firms back from bringing consumers back to the high street.”
The 1930-founded Wilkinson family chain had been searching for new assets with PwC for months.
Gordon Brothers, Alteri Investors, and Opcapita were investigating last-ditch proposals to invest in the company shortly before it went bankrupt.
It has been affected by inflationary pressures and supply chain issues, similar to many other high street retailers.
In recent months, it had been attempting to finalize a company voluntary arrangement (CVA) – a mechanism that would have led to significant rent reductions at hundreds of stores while preventing any closures.
As recently as late last month, a Wilko spokesperson described rumors of bankruptcy as “unfounded.”
“Since we were appointed administrators of Wilko, we have held extensive discussions with parties interested in purchasing all or a portion of the business,” said the administrators.
“While discussions continue with those interested in purchasing portions of the business. It is evident that this interest is not concentrated on the entire group”.
Thus, layoffs and retail closures are likely, thus employee representatives were informed today.
“We are aware that this will increase the uncertainty felt by employees. We will work closely with the government, JobCentre Plus, unions, and large employers to maximize the opportunities for a rapid return to work in the event of employee layoffs.
“In the short term, all stores remain open, continue to trade, and continue to pay their employees. There are presently no plans to close any stores next week, contrary to rumors.”
A spokesperson for B&M declined to comment, and a spokesperson for Pepco stated he would not respond unless emailed.
