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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