Wilko, the discount retailer, has entered administration, putting around 12,000 jobs and 400 stores at risk, with administrators PwC now launching talks to try and find a buyer to “recapitalise the business”.
Mark Jackson, the company's CEO, said in a statement: “We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what's best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators."
Claiming there had been a recent surge in interest from other firms, Jackson believes there are some which could “meet all our financial criteria” to restrengthen the business.
However, the tight timeframe and cash position have forced the unfortunate decision to enter administration, he added.
Rumours of rescue talks with Gordon Brothers drove headlines on Tuesday; however, turnaround firms like Alteri and Opcapita were noted as waiting for Wilko’s insolvency before opening talks.
The threat of collapse has been looming over Wilko for weeks, and the situation escalated when the retailer filed a notice of intention to appoint administrators last week, granting the company a 10-day buffer from creditors.
Having grappled with inflationary pressures and supply chain disruptions since the pandemic, the 93-year-old chain suspended home deliveries on Wednesday as part of its efforts to secure a rescue deal.
Wilko’s collapse is one of the largest retail failures since McColl's last year.