One of our favourite budget-friendly stores, Wilko, has confirmed that it has taken the difficult decision to file a notice of intention to appoint administrators, setting the iconic high-street retailer on the brink of collapse.
Today it was announced that the retailer is set to call in administrators, risking 12,000 jobs and may potentially have to close its 400 stores across the UK.
It's no secret that Wilko has long been a go-to for us at Ideal Home to find purse-friendly alternatives to stay up to date on the latest home decor trends. From all things homes, gardens, DIY, and more, Wilko has always been a top choice for us – so you can only imagine that we were disheartened to hear the news.
According to The Guardian, the budget retailer has struggled amid the tough economic climate and last year borrowed £40 million from restructuring specialist, Hilco. It also cut jobs and made changes to its leadership team after falling into a cash loss.
Additionally, Wilko's sales had fallen as they couldn't fill their shelves after struggling to pay suppliers following the withdrawal of credit insurers covering the retailer, which prompted some suppliers to pause deliveries.
Given that Wilko has been serving the UK high street for over 90 years, it would certainly be a loss to many of us who rely on it to secure great-value everyday products. However, as Wilko's CEO has regretfully explained, 'We've been left with no choice but to take this action.'
'While we can confirm we've had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business,' starts Mark Jackson, CEO at Wilko.
'At present, we don't today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we're faced with.'
'Unfortunately, with this in mind, today we're having to take the difficult decision to file an NOI (notice of intention to appoint administrators).'
Mark has confirmed that they will continue to progress discussions with interested parties, with the aim to complete transactions that would help to preserve the business 'as fast as possible'.
He continues, 'We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.'
We will continue to update you as the story develops.
