Wilko has issued a statement following the sale of its distribution centre to a private equity giant. It was announced towards the end of 2022 that the 1.1 million square foot distribution centre in Worksop was sold by Wilko to DHL for £48m, but it was announced on Wednesday, January 18, that the distribution centre building has been sold again.
The Canadian asset manager, Brookfield, has agreed to buy the lease on the centre for £88m. A spokesperson for Wilko said: "Our deal with DHL for the sale and long-term leaseback of our distribution centre reflected the strength of our business and represented a good deal for us.
“We can't comment on the onward sale, but it will certainly factor in the strength of covenant of the DHL business and security of the projected income in the reported value. Our lease terms with DHL are totally unaffected by this sale and we have a very positive relationship with them as our landlord. It's very much business as usual for our team members.”
The GMB Union says that CMA should be expanded in order to counter the growing influence of private equity investors on the UK high street. Nadine Houghton, GMB National Officer, said: "The sale of Wilko distribution centre to Canadian investment and private equity giant Brookfield and the recent Hilco revolving credit facility raises further concerns about the ever-growing influence of private equity investors in the UK high street.
"Highly debt leveraged models are being used to buy up the UK high street with little or no over sight from regulators.
The GMB union, which represents workers on the high street and in logistics, is calling for the role of the CMA to be expanded - giving greater regulatory oversight in relation to private equity buyouts and ensuring greater protection of both consumers and workers."
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