Monday marks the first day of job cuts at Wilko as negotiations set on partially rescuing the collapsed budget retailer continue.
Some 269 roles at Wilko’s Worksop support centre in Nottinghamshire will face the axe, according to administrator PwC, alongside 14 roles at subsidiary Kin Limited.
Further cuts could be announced this week meanwhile, as talks for a partial takeover of Wilko continue, with HMV owner Doug Pitman seemingly a front-runner to take on 300 of the chain’s 400 stores.
One spanner in the works could be demands from the likes of Unilever PLC (LSE:ULVR) and Procter & Gamble (NYSE:PG) over debt repayment from Wilko.
According to sources cited in The Sun, the makers of Domestos Bleach and Ariel detergent have sought reimbursement alongside guarantees that future supply is paid for upfront.
As well as this, concerns have been raised over shipments from other suppliers to stores which could remain open under a rescue deal, after many ceased sending goods on news of Wilko’s collapse into administration last month, the sources said.
A bid by M2 Capital fell flat last week as the private equity firm failed to prove funding for its £90 million offer to buy Wilko in its entirety.
Rivals B&M, Poundland, Home Bargains and The Range all remain in talks with administrator PwC to buy some of Wilko’s stores, meanwhile.