Wilko will keep its stores open for the time being despite having fallen into administration on Thursday, providing a glimmer of hope for the chain’s thousands of workers.
Wilko’s 12,500 staff will continue to be paid and no redundancies made immediately under current plans, which will see administrator PwC continue to engage with potential investors to rescue the discounter’s 400 sites.
Having announced an intention to appoint administrators last week, Wilko failed to secure a rescue package within its self-set 10-day timeframe, prompting Thursday’s collapse.
Despite having faced inflationary pressure and pandemic-induced supply chain disruption, Wilko was slammed by GMB Union national officer Nadine Houghton following Thursday’s news.
“[We’ve] been told time and time again how […] Wilko was in a prime position to capitalise on the growing bargain retailer market,” she said, but it “simply failed to grasp this opportunity”.
Third Bridge analyst Orwa Mohamad agreed, arguing Wilko “had lost its way on pricing and […] on availability”, meaning competitors fared much better.
“Similarly, Wilko’s online offers have gone significantly downhill over the last couple of years while competitors continue to invest in this area,” Mohamad added.
Though Wilko’s staff are protected for now under PwC’s lead, the professional services firm warned that no resolution could indeed prompt job losses and store closures in the future.