Wilko to make 1,332 workers redundant and close 52 stores despite last-minute bid to save 51 shops
B&M European Value Retail has agreed to buy up to 51 Wilko stores from administrators
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Administrators for Wilko have said they will make 1,332 workers redundant and close 52 stores, with 24 of these sites closing on Tuesday, September 12, and the remaining 28 closing two days later.
The store closures will lead to 1,016 redundancies, with job losses also including 299 roles at the company's two warehouses. There will also be 17 redundancies among the company’s digital team at its support centre.
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Edward Williams, joint administrator, said: “In the absence of viable offers for the whole business, very sadly store closures and redundancies of team members from those stores are now necessary, in addition to the already announced redundancies at the support centre and distribution centres.
“We know this has been a deeply unsettling time for everyone concerned and would like to express our gratitude to all Wilko team members for the dedication and support they have continued to give the business in the most trying of circumstances.”
The GMB said that administrators at PwC are still working with a bidder for Wilko “who has made an offer for a significant part of business”.
It added: “Whilst there remains a possibility that this fails to deliver, we are working extremely hard and doing everything we can to help it over the line.”
Wilko has more than 400 stores, with around 350 still at risk
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Earlier today, B&M European Value Retail said it has agreed to buy up to 51 Wilko stores from administrators for £13million, but around 350 stores remained at risk. It's understood the majority of these 51 stores are expected to rebrand as B&M.
The variety store chain said an update on the timing of the new store openings would be given alongside its half-year financial results in November.
In a statement, B&M said: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances. An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”
Wilko collapsed into administration last month, putting more than 400 stores and 12,500 jobs at risk.
Administrators announced hundreds of redundancies last week after a last-minute bid to save the entire business collapsed.
It was announced 269 Support Centre team member roles would be made redundant, effective from the close of business on Monday, September 4.
Administrators said there would be further redundancies across the two distribution centres.
Kin Limited (Kin), a subsidiary of Wilkinson Hardware Stores Ltd (WHSL) was closed, administrators announced, resulting in the redundancies of its 14 employees - also effective yesterday.
Jane Steer, joint administrator, said: “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 last month
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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.”
All Wilko stores remain trading and open, administrators said last week.
Home delivery and click and collect options are not available.
Wilko says customers can still check stock in their local store online, before visiting the location.