Private equity giant Gordon Brothers is said to be in talks about a potential rescue bid for stricken retailer Wilko.
Sources told Sky News that an offer from the Laura Ashley-owner could see the firm inject funding into the retail chain to support a restructuring that would see a significant number of store closures and job losses.
They said Gordon Brothers had expressed interest in partnering with other financial backers to inject £20m of equity and provide £50m in debt financing.
However, an insider said the chances of Gordon Brothers reaching a rescue deal in time were “relatively low”.
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Sky News reported that the project is being overseen by former Next and Mothercare boss Mark Newton-Jones, who was appointed to head up Gordon Brothers’ European operations back in February.
Turnaround investors Alteri and Opcapita are also said to be exploring offers for the retailer in recent weeks but are unlikely to secure a deal ahead of a formal insolvency process.
The family-owned chain filed a notice of intention to appoint administrators last week, putting more than 12,000 jobs at risk.
Wilko chief executive Mark Jackson said the retailer would “continue to progress discussions with interested parties” in the interim in the hopes of securing its future.
Potential buyers of the retailer need to pump up to £70m into firm, The Sunday Times reported, with at least £25m to £30m of the funds needed to get stock flowing through to Wilko’s stores and an additional £40m to pay off debts to Hilco.
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9 Comments. Leave new
Hopefully people are thinking about the 12,000 and not the family who have let this happen. They should hang their heads
I think in a few years time there will be hardly any shops left on our high streets at this rate thank you Tories thank you COVID and thank you brexit for this mess.
I believe should accept this wilko family one family member say no names run it into the ground if James new about this it wouldn’t have happened why Carnot she sorry to all those staff who could be losing jobs
It is sad – worked at Wilkinson from 1992 to around 2014 – was once a great business then the competition came & Wilko moved into a different direction that ended with a constant change in senior management. After Stuart Mitchell it was on a slippery slope and never came back. Fingers crossed for the 12000+ team members. Would have to assume the Wilkinson Family have walked away and this is a big shame.
Controversial I’m sure, but this actually sounds awful for Wilko. I wonder if Hilco may step-up themselves, already having a vested interest in the business.
Gordon Brothers was a buyer for another company if I remember correctly, might not be the best option but the company collapsed while under GB ownership
Is this the same company that rescued Laura Ashley, who have no stores left?
I can’t see anyone doing this without a pre-pack first, why take on all the long leases?
Why bother taking on all the liabilities when there’s no requirement to?
If Gordon Bros, are sincere in helping Wilko then that’s brilliant. Wilko is a very good, versatile company. Their picture frames for example are super quality. It would be a shame if Wilko stopped trading.
It’s simple load the “rescued” company with debt, strip anything of value, walk away