The owners of Wilko are considering the sale of a controlling stake as it races secure the chain’s future.
The retailer is understood to have begun sounding out prospective buyers in the last few days in a bid to raise tens of millions of pounds in new funding, Sky News reported.
Sources told the outlet that several large general merchandise chains had been approached about recapitalising the retailer in a move that could see the Wilkinson family surrender majority control.
Wilko, which currently employs about 12,000 people and trades from 400 stores, is one of the biggest privately owned retailers in Britain.
News of a potential sale comes weeks after PwC, which is advising the retailer, began discussions with potential financial investors about raising new equity to fund the business through an extensive restructuring process.
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Chief executive Mark Jackson said in a statement: “We’ve been very open that we’re exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist.
“We’ve a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that’s delivers significant return, accelerated by the investment needed.
“We’re actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery.”
The retailer has also been seeking to secure a company voluntary arrangement (CVA) that would prompt steep rent cuts across hundreds of stores. As part of the CVA, no store closures would take place.
However, the option is looking increasingly unlikely as the retailer explores other avenues to secure new funding.
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6 Comments. Leave new
Wilkinson have been in sready decline for many years. This is disappointing, as their stores were at one time innovative and refreshing. It has taken them far to long to realise that massively change is required. They need investment, however, more than this they need new progressive and innovativeness management with a proven successful track record in the sector. It is probably appreciate that the Wilkinson family do let go, as clearly they don’t have the necessary skills.
I agree 100% with Charlie Fleming, Wilko used to be bright and competitive but now just a tired shadow of it’s former self. The staff also seem flat, ( no surprise) lack of quality leadership at all levels. Looking at the merchandise, it seems they’re not sure what they want to be, too many departments spread thin, also there is a definite problem with far too many items ‘ out of stock ‘, resulting in too many empty shelves, all those lost sales. PwC can advise till they’re blue in the face but fundamental shop floor issues need to be resolved, after all this is where problems start and history shows, tend to finish.
I work in a wilko store and we are just seeing empty shelves after empty shelves. They struggling to keep going. Not competitive with there prices and really don’t have much of a range. We are staff just have to carry on as if it is business as usual.
Focusing on homewares since 2006 and opening shops in blatantly unprofitable places and the store estate varying wildly in size and seemingly adding nothing to the range, while B&M The Range HomeBargains and Poundland sold everything Wilko does and more… Wilko can’t blame “changing customer shopping habits” politics or the internet… They haven’t had the finger on the pulse of retail I’d say in about 15 years.
Correct.
Yes it is a sad day to here this … back in 2007 Woolworths closed and the Wilkinson business wanted to grab a slice of the lost cake ( Stuart Mitchell at the time ) put it smelt blood and after a time Wilko decided to change tact and move onto the upper premium target customer that day was the end to Wilko as we knew it ! Let’s hope the brand can find a buyer …. Doubt it though