// Wilko has deferred supplier payments and extended the timeframe in which it settles invoices as it seeks to manage its cash flow
// Earlier this month, Wilko told landlords it would pay its quarterly rent in monthly installments to conserve cash ahead of Christmas
Wilko has deferred payments to suppliers to protect its squeezed cash flow.
The discount retailer has unilaterally decided to delay payments and has told suppliers that bills due to be paid between 11 September and 8 October would instead be made in the following month, according to The Sunday Times.
Wilko has also changed its terms so that suppliers will be paid in a minimum of 60 days, although the retailer declined to confirm to the newspaper what it’s previous payment terms were.
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The retailer blamed the recent changes on cost inflation, shipment delays and the impact of closing stores on the day of the Queen’s funeral.
The move is the latest effort by Wilko to manage its cash flow.
Earlier this month it emerged that Wilko had told landlords it would pay its quarterly rent bill in monthly installments as it seeks to conserve cash ahead in order to stock up for Christmas.
Wilko is currently being advised by debt experts at Interpath Advisory on a refinancing.
6 Comments. Leave new
Always a sign of financial distress.
So wilko are protecting its cash flow but stuff the suppliers cash flow. With customers like that you need insolvency company or at least a small claims court.
Wilko don’t even pay staff their back pay!
Sinking ship comes to mind!
Went to buy paper for my printer and no stock.
Too many empty shelves . Will take a lot to get me back.
Walking in any Wilko store it’s clear they are about to go bust as they have no staff and no stock.
B&M, Poundland, Home Bargains and One Below have taken their business.
Typical, another big company putting the squeeze on small ones.
Perhaps we all should go into Wilkos purchase something then say we’d will pay them in 60 days.