// Wilko employs around 16,000 and has over 402 shops
// The struggling chain retailer was unable to agree to an extension of its revolving credit facility
Discount chain Wilko is currently in talks to secure a £30 million cash injection as cost pressures intensify in the run-up to Christmas.
The high-street retailer which employs around 16,000 and has over 402 shops, is in talks with alternative lenders for an emergency loan, The Sunday Times reported.
This comes as the struggling chain retailer was unable to agree to an extension of its revolving credit facility due to interest rate hikes, hence its decision to discuss plans with alternative lenders.
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However, these alternative lenders usually extend credit at higher interest rates or in exchange for security over a firm’s assets.
“We’re taking this opportunity to review how we manage our ongoing financing to best trade through the current retail environment while continuing to invest in our future,” Wilko CEO Jerome Saint-Marc said.
The news comes as Wilko eased some pressure this month by signing a 15-year agreement and leaseback deal on it Nottinghamshire-based distribution site with DHL.
The £48 million deal helped the company pay off its revolving credit facility.
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