Wilko workers signed up to its pension scheme have been hit with a reduction to their savings, as the business’s benefit scheme enters the Pension Protection Fund.
According to administrator PwC, the deficit in the scheme has risen to £76m on a buyout basis, compared to the £50m previously thought.
While £56m will rank as an unsecured debt, the scheme is due to reclaim £20m from security taken over a distribution centre and other freehold properties.
Any distributions to unsecured creditors will likely remain negligible, according to The Sunday Times.
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Under the Pension Protection Fund, members of the scheme at retirement age will get their full pension, while younger members will receive a 10% reduction to their benefits.
Last week it emerged that Wilko’s 400 stores are set to close after HMV owner Doug Putman’s offer to take on the bulk of its shops fell through.
B&M has inked a deal to buy 52 stores, while Poundland has snapped up 71 shops
The Range also bought Wilko’s brand, website and intellectual property for £5m.
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