More Wilko job losses loom as Putman rescue deal collapses
Wilko collapsed into administration last month and some stores will close it was announced last week
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Talks between Doug Putman and PwC, the administrators for Wilko, have ended.
The rescue deal would have seen the HMV owner acquire about 200 Wilko sites.
In a statement to The Sun newspaper, Mr Putman said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.
“We had financing in place and received the full support of PwC, Wilko management and staff representatives, which we are deeply thankful for considering what a challenging time it has been for them.
​Wilko administrators have confirmed 52 stores will closeÂ
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“However, commitment to overhauling the trading framework of the business with partners and the costs of running Wilko’s legacy operations infrastructure combined has meant that a stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted.”
A retail executive close to the situation said he expected the administrators to seek to strike an agreement with Poundland's owner to buy around 100 stores, Sky News reports. It was unclear whether the staff who work at those stores would form part of the transaction.
Other high street retailers including The Range and Home Bargains have also signalled interest over potentially buying the Wilko brand or stores, according to reports.
Last week, the joint administrators for Wilko announced they had entered into an agreement to give B&M the option to buy up to 51 Wilko properties.
However, it was confirmed that 52 stores would close, with the full list of the stores which are closing announced on Wednesday.
It meant the redundancies of 1,016 staff based at the affected sites, and a further 299 redundancies at the two distribution centres in Worksop and Newport.
It followed 269 team member redundancies in the Support Centre, plus 14 job losses following the close of Wilkinson Hardware Stores Ltd (WHSL) subsidiary Kin Limited (Kin).
Jane Steer, joint administrator, said last week: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.
“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work.
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Wilko collapsed into administration on August 10, putting 12,500 jobs and around 400 stores at risk
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"Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.
"We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms.
"Advice and assistance will also be available from Job Centre Plus and other agencies.”
Wilko collapsed into administration on August 10, putting 12,500 jobs and around 400 stores at risk.