// Wilko tells suppliers it is set to close its toy department
// Earlier this month the business secured a £40m funding lifeline from Hilco UK
Wilko is to stop stocking toys across its stores, and will instead focus on its heritage of selling garden and household goods, Toyworld mag has reported.
The family-owned business informed suppliers in a letter while offering some reassurances that it will offer seasonal/outdoor toys at relevant times of the year.
The news comes after Wilko secured a £40m funding lifeline from Hilco UK, one of the high street’s most prolific investors and owner of Homebase and Cath Kidston.
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Details of the loan deal were filed at Companies House late last month, and come amid expectations of a challenging trading environment for retailers in 2023 as sales are predicted to grow between 1% and 2.3%, shadowed by rising inflation and weakened consumer demand.
Back in October, the company called in advisers from Teneo as it explored cost-cutting and restructuring options in an effort to improve its balance sheet.
Founded as a hardware store in 1930, the discount retailer employs roughly 15,000 people and trades across the UK from about 400 stores.
The retailer swung to a £36.8m loss at the beginning of the year after lockdowns, supply chain disruption and a dip in consumer demand impacted trading.
In 2022 the retailer warned that there was a risk of it running out of cash by the end of 2023 if trading conditions deteriorated further.
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