Last-ditch rescue talks under way to save high street retailer on brink of collapse

Wednesday, 9 August 2023 08:18

By Greg Lambert @greglam72

The Wilko store on Penny Street in Lancaster

Rescue talks have been taking place in a last-ditch effort to save a high street retailer with a store in Lancaster from administration.

Wilko is in talks with specialist investors Gordon Brothers in an effort to keep the ailing household goods chain from going bust.

Wilko has around 400 stores across the UK, including one on Penny Street in Lancaster city centre.

It was announced last week that the chain planned to enter administration, putting around 12,000 jobs at risk and threatening the future of its shops.

Wilko filed a notice of intention to appoint administrators in the High Court.

This gave the retailer a 10-day window of protection to try and secure funding.

PricewaterhouseCoopers, which is advising the family-owned retailer, is understood to be seeking binding offers within days, with the company close to running out of cash.

Wilko has been owned by the Wilkinson family, which established the business, since 1930.

Like many high street retailers, it has been hit by inflationary pressures and supply chain challenges.

Mark Jackson, Wilko chief executive, said last week: "We'll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we're in discussions with to move as fast as possible.

"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."

The Wilko Lancaster store is currently offering a 'Big Sale' to its customers.

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