Discount retail brand Wilko has announced there will be no redundancies for its staff or changes for customers as it restructures its leadership team amid financial losses. The brand, which is based in Manton Wood Enterprise Park in Worksop, has also agreed to a £40 million, two-year revolving credit facility with Hilco.
The company announced it has also sold its distribution site in November to DHL for £48 million. However, it will not be moving from its large headquarters as it will be leasing the site back from DHL in a new 15-year partnership agreement.
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It is hoped the funding from Hilco will allow 'financial stability throughout a tough trading period.' It has been a tough year for retailers due to the cost of living increases and energy crises which hit after two years of difficult Covid restrictions.
The company, which is the fourth largest firm in Nottinghamshire, recorded a £36.8 million loss before tax over the year leading to January 2022. During lockdowns of 2020, it recorded £4.4 million in profit as many households turned to DIY and it was one of the first stores allowed to open in the early months of the pandemic as it was deemed essential.
Total sales dropped by £43.2 million to £1.32 billion according to accounts filed at Companies House. In a statement, Wilko admitted it 'had not been performing to its full potential' and needed to make 'strategic changes.'
It confirmed that this will not affect the 16,000 staff across the business or customers. Wilko is the UK's 23rd biggest retailer with a 20,000 product line from household goods to pet food, across more than 400 stores.
The 92-year-old brand announced there will be changes to its leadership team in a bid to turn around the business. This has meant the appointment of a new CEO, Mark Jackson, in December, who joins the company from Benson's for Beds. Chris Howell will also join the brand as Chair and Non-Executive Director to ensure a smooth transformational change.
Major shareholder Lisa Wilkinson will step aside as Chair but will remain on the board as family director. Lisa is the daughter of Tony Wilkinson and had been responsible for operations at Wilko retail both online and in-store. She started with the company in 2004.
She said: “Our history is steeped in serving customers and communities going back to 1930. Right now we’re making necessary changes to restore confidence and safeguard the future of the business. That includes making sure we have the right leadership in place - one aligned team with the right expertise to deliver the retail experience our customers are demanding of us today.”
Hilco has provided financial support to many brands, both healthy and distressed, including Cath Kidston and Homebase.
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