// Wilko could pay no rent on some of its stores for the next three years
// The discount chain will launch a CVA next month as it looks to slash rent costs
Wilko landlords are facing the possibility of receiving no rent for the next three years as the retailer prepares to launch a CVA.
The struggling value chain, which will launch the restructuring arrangement next month, is looking to cut rents on 240 of its 400 stores, The Times reported.
The move could result in some landlords receiving no payment until the rent reverts to the contractual amount after three years under the terms of the CVA.
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While Wilko does not plan to close any of its shops, it is likely that some landlords will take back their properties.
One source close to the process told The Times that the retailer will soon run out of money and could collapse into administration if a CVA is not agreed.
Wilko hired property agent CBRE last week as it prepared for negotiations with landlords, which are due to begin in the next two weeks.
The CVA comes as the retailer is in the midst of a turnaround under chief executive Mark Jackson.
It follows several cost-cutting measures made in recent months, including axing over 400 jobs and scrapping its toy department 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 due to a dip in consumer demand.
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