HMV owner Doug Putman’s Wilko rescue deal is under threat as big suppliers have demanded their debt is repaid before supply lines are opened to the retailer.
Sources told The Sun that the likes of Unilever and Procter & Gamble have also demanded upfront payment from Wilko to guarantee supply.
Concerns were raised over the weekend that certain suppliers who had ceased shipping goods to Wilko’s stores might not be able to resume product shipments for another six weeks.
The news creates further uncertainty for the collapsed discount retailer’s 12,500 staff. Although redundancies commenced at its distribution centre and head office yesterday the majority of employees are still waiting news on their future.
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Putman’s potential rescue deal would save around 300 stores and approximately 8,000 jobs.
It is thought the supplier issue has delayed a decision on Wilko’s fate with an announcement now unlikely early this week.
Administrators at PwC are still engaged in talks with rival retailers B&M Bargains, Poundland, Home Bargains and The Range who would take on some stores whilst online marketplace OnBuy is looking to buy the Wilko brand.
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10 Comments. Leave new
That’s the last nail right there. Nothing is going to save Wilko.
Well, if Wilkinsons aren’t rescued, the suppliers won’t get anything. They should now be focusing on future business.
All companies should have provision for bad debt in their contingency planning, it’s part of standard business practice.
Quick everyone, act surprised! *shocked face*
Its another blow for our high street .
Wilkinson is a shop where you can find any household appliances as decoration items and much more its become a very much needed service.
Bedding , lighting and more .
And so many people made redundant.
Surely suppliers are cutting there own throats in losing potential future sales
Stop the time wasting and get it sold and save jobs .
12.500 staff give them the option of shares in exchange for their redundancy package it might save their jobs at their local branch and lease it back to them like a local co-operative and find a company that buys the freehold and rents it to them
And the suppliers should not give so much credit their greedy their covered any way by bad debt silly and greedy
This selfish owner of Wilko store is killing our town, we have a big store in bridgend South Wales UK, it has a basement, ground and first floor, our town will become a ghost town