All 400 Wilko stores to close at the start of October – BBC News

The Wilko name will disappear from the UK’s high streets following the collapse of a deal to rescue the chain.

All of its 400 stores across the UK will close at the start of October, the GMB union announced.

This means layoffs now appear likely for all 12,500 employees of the family business.

It is understood that no bidders are interested in running stores under the Wilko name, although some parties are keen to rename their stores.

Billionaire HMV owner Doug Putman hoped to keep up to 300 Wilko stores open, but his bid failed as rising costs complicated the deal.

Administrators are expected to soon announce details of further layoffs and store closings.

The company has faced stiff competition from rival chains such as B&M, Poundland, The Range and Home Bargains as the high cost of living has pushed shoppers to hunt for bargains.

B&M has announced it will take over up to 51 of Wilko’s 400 stores in a deal worth £13 million. The BBC understands the stores will be rebranded as B&M, although it is not yet clear whether any jobs will be saved or whether Wilko workers will be given preference if applying for positions at B&M stores.

Many Wilko stores can be found on the main streets of traditional city centers. While these locations are convenient for shoppers without a car, since the pandemic there has been a shift towards larger retail parks and out-of-town options with more space, to the benefit of rivals like B&M.

Poundland is also said to be interested in buying up to 70 stores to strengthen its own portfolio.

The Wilko brand is also still up for grabs, with retailers including The Range offering deals for the name specifically.

A Wilko employee, who asked to remain anonymous, told BBC News on Monday morning that staff had still not received official information about the future of her store.

“I feel sick and tired now, everyone is stressed,” she said.

The employee, who has worked for the retail chain for 15 years, added that she felt “abandoned by Wilko, the union and people in administration.”

Another said he was learning the details through the press, adding that weeks of uncertainty had affected workers’ mental health.

“It’s not fair to these loyal employees who have stood by Wilko,” she said.

The cash-strapped chain announced in August that it had collapsed into administration, sparking concerns about the future of its 12,500 employees.

A further 299 redundancies took place at its two distribution centers in Worksop and Newport, which will close on Friday next week, while more than 260 redundancies were made at its support centre.

A rescue attempt by Canadian entrepreneur Doug Putman was hampered by the costs and difficulties created by the need to overhaul Wilko’s supply chains.

It had initially envisioned up to 300 stores, but the deal in its most recent form included perhaps around 100.

The day-to-day costs of keeping everything running, rents and contracts with suppliers were also a challenge.

Mr Putman said he had worked with administrators and suppliers for several weeks to find a viable way to save the business and the failure of the bid was “a great disappointment”.

“A stable basis could not be ensured to ensure the long-term success of the company and its employees as we would have liked,” he added.

After the collapse of Woolworths in 2008, Wilko – which remained a family business until its problems came to a head – stepped in to fill the void left on the High Street.

Founded in 1930 and well known for its affordable everyday items, it was struggling with heavy losses and a lack of liquidity.

Nadine Houghton, national officer of the GMB union, said: “Wilko was much more than a brand, a retailer or the products it sold, it was the thousands of loyal team members now facing an uncertain future . “Wilko may have stopped being truly a family brand many years ago, but the staff kept Wilko’s true family philosophy alive until the very end. It’s the family that Wilko’s colleagues have made that we will miss most.”

Wilko had already borrowed millions from restructuring specialist Hilco, cut jobs, reorganized its management team and sold a distribution center as it struggled with rising costs and to keep stores well stocked.

The company has been criticized for paying dividends in recent years, but Lisa Wilkinson, chairman of the retailer until January this year and granddaughter of the company’s founder, said the company would have collapsed even if she had not made these payments.

Ms Wilkinson recently said “everyone pulled out all the stops” to try to save the business.

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