Proposed rescue deals between Poundland and B&M to acquire more than 100 former Wilko outlets could fall through as the discount retailers try to negotiate more favourable terms with landlords.
B&M, which agreed to take on 51 of the collapsed retailer’s sites, has been accused of delaying completion in an attempt to set up new rent and lease arrangement with move favourable terms, The Times reported.
Poundland is also said to be renegotiating with landlords to line up back-to-back rent deals on 71 Wilko stores it initially agreed to last month.
The discount chain revealed yesterday that it had formally taken over 20 former Wilko stores, with 10 of them set to open on Saturday.
However, there are still 100 formal applications on properties between both retailers yet to be submitted.
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Property sources warn the acquisition deals could fall through, resulting in more store closures, job losses and smaller returns for creditors.
PwC published its administrators report last week estimating that the retailer’s creditors were set to receive up to 4p in the pound.
It also said that B&M had entered into a provisional agreement to take on the leases of 50 vacant units, as well as the freehold of a store in Porthmadog, north Wales.
Around £5.3m is being held on PwC’s behalf by law firm Shoosmiths in respect of the initial consideration for the freehold disposal and the B&M options.
The remaining £8.1m is dependent on B&M completing the deal, the report said.
Similarly, £142,000 was being held while Poundland sought agreements with landlords of the 71 empty properties that it acquired.
PwC said that it had received only £653,000 relating to holding costs for the properties.
“The deals that have been concluded provide the purchasers with the opportunity to take on or agree new leases at the relevant vacant sites, subject to the outcome of their discussions with the relevant landlords,” a PwC spokesman told the publication.
“We hope that agreements will be reached as soon as possible and that new Poundland and B&M stores will soon be open to customers.”
Poundland said that it was working hard “to agree terms to reopen as many of the ex-Wilko stores as we’re able”.
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