The future of Scottish retail chain Wilkies has been secured following a sale of the business and certain assets out of administration.
With its origins dating back to 1898, the family-owned retailer of ladies and mens fashion and homewares is headquartered in Edinburgh. Employing 95 people, it currently operates from 11 stores in towns across Scotland.
In common with other retailers, the company faced trading challenges as a result of the pandemic. Unfortunately, sales did not recover to pre-pandemic levels in some locations and this, coupled with rising labour and energy costs, led to significant losses being incurred.
In recent months, the directors sought to explore options, including a sale of the business, but a solvent solution was unable to be found.
They therefore sought to appoint administrators, which then sold six stores to a new company, Wilkies Trading - in Largs, Castle Douglas, Peebles, Perth, Ballater and Helensburgh.
A total of 55 employees have transferred to the purchaser as part of the transaction.
However, five stores were not included as part of the transaction, four of which will close with immediate effect: Edinburgh, North Berwick, Hamilton and Falkirk.
A total of 30 employees have been made redundant as a result of these closures.
The joint administrators are continuing to trade the Kirkcaldy store for a short period in order to sell stock which was not sold as part of the transaction. 10 members of staff have been retained by the administrators while the store continues to trade.
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, commented: “The high street continues to come under significant pressure, with another retail casualty caused by a combination of customers moving to supermarket and online retail, and cost pressures particularly from labour and energy prices biting.”
Karen Forret, managing director of Wilkies, said: “We are proud to keep the Wilkies brand alive and to have saved as many jobs as possible.
“Business rates in Scotland are nearly 75% higher than everywhere else in the UK, but we believe our high streets still have so much to offer, and are vital to our communities and economy.
“We are passionate to continue to drive this great Scottish brand forward and open our doors to customers on the high Streets of Largs, Castle Douglas, Peebles, Perth, Ballater and Helensburgh.”
Wilkies Trading has advised it will be accepting credit notes and gift vouchers in their six stores, although this option will not be available to customers in the Kircaldy store.
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