// Wilko considers launching a CVA to cut rent costs and potentially close stores
// The struggling value chain has been working with advisors at PwC on restructuring options
Struggling value chain Wilko is mulling a company voluntary arrangement to renegotiate rents and potentially close some stores as it looks to cut costs across the business.
The retailer is understood to have approached advisors at PwC to explore various restructuring options, including a CVA that would allow the retailer to renegotiate agreements with its landlords, Bloomberg reported.
Chief executive Mark Jackson told the outlet: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”
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This comes as the retailer has made several efforts to cut costs across the business in recent months, including axing over 400 jobs at the start of the year.
In January, Wilko secured a £40m funding lifeline from Homebase owner Hilco UK after it swung to a £36.8m loss in its last full-year results as a dip in consumer demand impacted trading.
The retailer warned it could run out of cash by the end of this year if trading conditions deteriorated further.
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