Wilko’s plans to file for administration puts all of its 400 stores at risk and could mark the end of the largest privately owned retailer in the UK.
The bargain retailer filed a Notice of Intention (NOI) last Thursday (27 July) and is expected to enter insolvency after failing to secure a takeover to save the business. The company said it had “no choice” but will continue a possible rescue takeover to save its hundreds of stores.
Wilko’s chief executive Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“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.”
It comes as the number of insolvencies in England and Wales surged to its highest level for 14 years as firms were hit by smaller consumer budgets and rising borrowing costs.