Administrators for collapsed retailer Wilko suspend redundancies to consider new bids for the business, offering hope to hundreds of workers at 12 Liverpool city region stores. Tony McDonough reports
Hundreds of workers at 12 Liverpool city region Wilko outlets have been offered hope a buyer will come forward for the business and save their jobs.
Wilko, which operates around 400 discount shops selling food and household goods across the UK, collapsed into administration earlier this month. It had been struggling with a shortage of cash.
Fierce competition from budget rivals such as B&M and Home Bargains, both Liverpool-based, has also made life tough for the high street brand.
There are around 12,500 workers employed by Wilko across the UK with 12 located across the six Liverpool city region boroughs.
On Tuesday, administrators PwC suspended redundancies while it considered a number of bids for the company. One of those is a £90m proposal from private equity firm M2 Capital which is pledging to retain all current jobs for two years.
And last week LBN reported that Doug Putman, owner of HMV and Toys R Us in Canada, was in talks about a deal that could save up to half the stores.
PwC said it had been working “relentlessly” to secure a sale of the business. It added: “We are actively engaging with all interested parties and assessing the deliverability of all bids made.”
Workers at the chain are being represented by the GMB union. Its leaders met with the administrators on Tuesday morning.
Andy Prendergast, GMB national secretary said: “All redundancies at Wilko have been suspended while the administrator considers further bids.
“While this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs.”
JK Wilkinson opened the first store in Leicester in 1930. Initially expanding across the Midlands it grew to become a national chain.
However, in recent times, customers had noticed gaps on shelves after Wilko struggled to pay suppliers. At least one credit insurer withdrew trade cover, prompting some companies to pause deliveries.
PwC said it had been working “relentlessly” to secure a sale of the business. It added: “We are actively engaging with all interested parties and assessing the deliverability of all bids made.”
Workers at the chain are being represented by the GMB union. Its leaders met with the administrators on Tuesday morning.
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Andy Prendergast, GMB national secretary said: “All redundancies at Wilko have been suspended while the administrator considers further bids.
“While this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs.”
JK Wilkinson opened the first store in Leicester in 1930. Initially expanding across the Midlands it grew to become a national chain.
However, in recent times, customers had noticed gaps on shelves after Wilko struggled to pay suppliers. At least one credit insurer withdrew trade cover, prompting some companies to pause deliveries.