Wilko stores face closure after rescue efforts fail

The majority of Wilko stores are set to close after efforts to save the business failed.

Unions were told of impending store closures and job losses on Wednesday evening by administrators PwC, which said efforts to find a buyer for the business had fallen flat.

GMB, which represents more than 4,000 of Wilko’s staff, said it had been told there was no longer any prospect of saving the business, which collapsed earlier this month.

The union expects redundancies to begin this week for staff across Wilko’s 400 stores and at its call centres. The company has around 12,000 staff in the UK.

Jane Steer, Zelf Hussain and Edward Williams of PwC, Wilko’s administrators, said in a joint statement: “While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole Group.

“Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives.

“We will be supporting staff through this deeply unsettling time, working closely with the government, JobCentre plus, unions and large employers to maximise possibilities for a rapid return to work for employees in the event of redundancies.”

There is still a prospect that a buyer could emerge for some individual stores or groups of stores.

However, PwC’s announcement effectively ends any hope of a rescue of the business as a trading entity.

GMB national secretary Andy Prendergast said: “GMB Union will continue to support members through this process and will fight to ensure members are consulted as per the law and that you receive every penny you are entitled to.

“We will fight to ensure Wilko bosses are held accountable for the simple reason our members deserve so much better.”

Wilko fell into administration earlier this month after struggling with its debts.

B&M, Poundland, The Range and Home Bargains were all said to have been interested in at least some or part of the business.

Wilko struggled during the pandemic, suffering from major supply issues that left it struggling to get hold of enough stock.

The family-owned chain was founded by James Kemsey Wilkinson in Leicester in the 1930.