Wilko Goes Into Administration Today: Online Orders Stopped
Wilko, a familiar presence on the UK high street with its 400 shops and 12,000-strong workforce, has entered into administration. Initial rays of hope from a prospective rescue deal with Gordon Brothers, owner of Laura Ashley, have collaposed.
CEO Mark Jackson said the company had “no choice but to take the difficult decision to enter into administration“.
Although talks with multiple buyers had been initiated, formal offers remain undisclosed.
Adding to concerns, online shoppers have been met with a roadblock, only allowed 'click and collect' services on Wilko's website. This adjustment followed the company's declaration of its intent to appoint administrators on August 3. This legal notice provides a 10-day breathing space, shielding the company from potential creditor action.
Just a month prior, executives contemplated offloading a controlling stake. Experts from PwC were enlisted for guidance, and CBRE property agents were roped in to broker discussions with landlords. Yet, the company's future, inclusive of its expansive brick-and-mortar portfolio and its employees, remains shrouded in uncertainty. Even if administrators do step in, a takeover might ensure the stores’ continued operation.
Wilko's recent history is marred with red flags. Announcements to shutter over a dozen stores were made in early 2022, and a further reduction of 400 roles across the board followed in February 2023. Restructuring was on the table by May, with a potential pivot towards a company voluntary arrangement (CVA), an insolvency mechanism.
The decline isn't restricted to Wilko. The pandemic's aftermath, characterised by surging inflation, higher energy bills, and an accelerated migration to online shopping, has squeezed traditional retailers. With fewer footfalls, even giants aren't immune. Paperchase's closure of all 106 stores, M&Co and Joules' unfortunate downfall in 2022, and even Byron Burger's dire straits serve as ominous reminders.
The high street's transformation is in full swing, and only time will reveal if Wilko, and many like it, can navigate this tumultuous period.
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I really hope it can be saved - would be a huge shame to lose this place! Just went there yesterday as well!
i Can’t help but ask when they will be reducing stuff i could do with the chance to get a few bits before the ones who trash shops and hurt ppl over a bargin lol
Very sad. Wilko was excellent for so many things, at a good price. I feel very sorry for the staff.
Another high street chainstore closes due to the market dominance of a certain online retailer, very sad and extremely frightening.
Keeping everything crossed it can be saved. Won't he the same without it. Regular shop there. Went yesterday with my nephew for pick and mix and other bits.
Really difficult times for many shops, and now before Wilko, too. I liked to buy daily necessities there.
Thanks for sharing the news.
On that is so sad we buy all our bird food in there because it is good quality and good value not enough to save all those poor people's jobs though
Now where will I get my coconut and lime Zoflora? Good job I bought 5 on my last delivery and still have 4½ left!!! Such a shame. Online shopping has likely killed Wilko as their already low prices cannot compete with even lower cost online shopping and free delivery!
So sad, another store gone from the high street. I loved shopping at Wilko.
I don’t have one local to me but I have asked three different people to go in store at different locations nationwide to get some make up stuff I like and shelfs are almost bare.
Yet another retailer going into administration this is very sad news indeed for all the employees who have worked so hard and are now going to loose their jobs. It makes you wonder who will the next big retailer to go under administration.
I have worked at wilkos over 20 years, and this is a very sad day for us all here at Leigh store we are like a work family, i for one would like to thank all the staff for making work fun, thank you. We have lots of regular customers who we got to know, thank you to you all for your continued support.
Such a shame it really is, unfortunately a lot of the stores were in high streets, where people used to shop and work. Due to pandemic, many people are still working from home and fewer people are going into the High Street because of parking charges, lack of shops now and it also being cheaper and convenient to shop online.
For those of us old enough to remember, it's Woolworths all over again. They do say that history repeats itself
Not good to see such a retailer is in trouble. 12k workforce is not a small thing. Pandamic changed everything and almost everyone’s life
I echo the same. Very sad to see Wilko getting into administration. Hope some miracles will save it.