Wilko: Nottingham-based homeware retailer on brink of collapse as 12,000 jobs at risk
Family-owned company “left with no choice” but to make “difficult” decision
Nottingham-based homeware retailer Wilko is on the brink of collapse, with around 12,000 jobs at risk.
The chain confirmed it had filed a “notice of intention” to appoint administrators after failing to secure a significant cash investment.
Wilko, which has 400 stores across the UK is known for its affordable household essentials.
The company, which was founded in Leicester in 1930, is owned by the Wilkinson family, with its corporate headquarters based in Worksop.
Mark Jackson, Wilko’s chief executive, said the business will “continue to progress discussions with interested parties”.
He described the decision as “difficult”, but said that the company was “left with no choice but to take this action” and hopes to “preserve the business”.
Wilko has been struggling for months, and in May considered entering a Company Voluntary Arrangement - a form of insolvency.
The company, which has an annual turnover of around £1.2bn, has a “robust turnaround plan” in place, which the Wilko boss first revealed in January.
Brendan Clarke-Smith, the Conservative MP for Bassetlaw, said he was “deeply concerned” by the announcement.
“[I have] been following developments for [a] while,” he added. “[I] will be working the best I can to make sure the situation is resolved and local jobs are protected.”
The Notice of Intention gives Wilko 10 business days to find a deal to save it from liquidation.
Scott Knowles, chief executive of East Midlands Chamber, said Wilko, which has been headquartered in Nottinghamshire for more than 50 years, “has been a huge success story for the East Midlands”.
He added: “It’s a family business that has continually diversified over its lifetime as the retail industry has gone through constant change and is a brand loved by communities up and down the country.
“This latest development will of course cause great concern for thousands of employees during a cost-of-living crisis, not to mention disappointment for its huge customer base, and we all hope for a positive outcome for the business and its people.”
Wilko is the latest Nottingham-based company to get into difficulty. In June, Boots announced store closures and jobs at its manufacturing site are at risk, with hundreds also made redundant at building contractor J. Tomlinson last month.