Wilko has filed a notice of intention to appoint administrators after failing to find investment, potentially putting 12,000 jobs at risk.
In today’s statement from chief executive Mark Jackson, the embattled business confirmed it was struggling to find a buyer which provided the “necessary liquidity” in the time it has available, “given the mounting cash pressures” it was facing.
He added that the retailer, which has been a staple of the British high street for over 90 years, had no other choice.
The business, which currently employs about 12,000 people and trades from 400 stores, is one of the biggest privately owned retailers in Britain.
Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present. Unfortunately, with this in mind, today we’re having to take the difficult decision to file a NOI [notice of intention].”
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Earlier this year, the owners of the retailer revealed they were considering a sale of the company in a bid to secure its future.
Wilko confirmed that it will continue discussions with parties interested in buying the firm.
Its aim is to complete a transaction which “preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible”.
The statement added: “We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable wilko and maximise the significant opportunities that we know exist.
“We’re a £1.2bn turnover business with strong presence on UK high streets through our 400 stores, online at wilko.com and through our great value wilko own brand products, serving local communities with their everyday household and garden needs for over 90 years.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
