Thousands of job losses and hundreds of store closures look increasingly likely after Wilko administrators confirmed talks had found no buyer for the whole group.
It means Wilko – which entered administration on 10 August, putting about 12,500 jobs and 400 stores at risk – will be carved up. Poundland and B&M are reported to be negotiating for about 150 stores between them, while many of the others could be closed.
“We have held extensive discussions with parties who expressed an interest in buying all or part of the business,” said PwC’s Jane Steer, Zelf Hussain and Edward Williams, joint administrators for Wilko.
“While discussions continue, it’s clear the nature of this interest is not focused on the whole group. Sadly, it is therefore likely there will be redundancies and store closures.
“We know this will further add to the uncertainty felt by workers. 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.”
They said stores would remain open and staff would be continue to be paid in the immediate term, adding: “Contrary to speculation, there are no plans to close any stores next week.”
The statement on Wednesday was pre-empted by one from GMB Union saying: “The majority of Wilko stores are to close within weeks.”
Updating its members following a meeting with PwC, GMB said the sale of a significant part of the business to a buyer had fallen through, meaning “there is no longer any prospect that the majority of the business will be saved”.
It said redundancies would begin for support centre and warehouse staff over the coming week. For store workers, “we must advise that we now expect significant redundancies” the union said, adding “the timing of this is uncertain”.
Read more: How did high street favourite Wilko come to collapse?
Poundland’s owner Pepco Group is in discussions to acquire about 100 stores, while B&M is in talks to take between 40 and 50, according to Sky News.
Aldi today became the latest in a number of retailers to urge Wilko staff to get in touch about job opportunities. Aldi said it had 6,000 jobs currently available across its UK stores, from assistant to manager positions.
Wilko entered administration after failed attempts to find a buyer for the 93-year-old discounter. The retailer was in the midst of a turnaround plan aimed at cutting costs and growing online sales.
In the months leading to its collapse, it sold its Worksop distribution centre for £48m and secured a £40m two-year revolving credit facility from lender and Homebase owner Hilco UK. It had also hoped to launch a company voluntary arrangement, a restructuring process involving reduced rents for stores.
GMB national secretary Andy Prendergast said: “GMB will not forget the incompetence that has led to this collapse and will we not forget the dividends paid to the millionaires who gambled workers’ jobs on their whims.”
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