The Business Select Committee has initiated its inquiry into the downfall of Wilko, which resulted in the termination of 12,500 jobs in early September.
Nadine Houghton, a national officer at GMB, attributed the firm’s descent into administration to “ineffective leadership.”
She specifically pointed to Lisa Wilkinson, the founder’s granddaughter, as having “a considerable share of responsibility.”
Houghton criticized the substantial dividends extracted from the company, totalling £77 million over ten years.
Additionally, she noted the company’s failure to adjust to market shifts.
MPs Informed of Wilko’s Shift Towards a ‘John Lewis-Type Model’ Before Its Collapse Wilko had been communicating its “challenging trading positions” since 2010 to its union, expressing a desire to transition from being perceived as a discount retailer, as informed to MPs.
Nadine Houghton, the GMB union’s national officer, relayed to the Business and Trade Committee:
“We have correspondence with Wilko highlighting a challenging trading situation starting around 2010. They acknowledged the competition from discount retailers.”
Instead of embracing this, the company sought to alter its business approach.
“What we observed was a shift from the perception of Wilko as a discount retailer,” Ms. Houghton explained.
She further noted: “The internal communication to our members was clearly aimed at transitioning towards something akin to a John Lewis-type model.”
Lisa Wilkinson, the former chairman of Wilko, has expressed her deep regret over the company’s collapse, which resulted in the loss of over 12,000 jobs. Addressing MPs, Wilkinson conveyed her sorrow for the failure of the 93-year-old retail chain, acknowledging the impact on employees, customers, suppliers, and advisors.
She stated:
“I am heartbroken over the fact that we failed each and every individual affected by Wilko’s insolvency. The depth of my sadness is indescribable, knowing that we have disappointed our entire team, our loyal customers, our suppliers, and our advisors.”
When urged by Liam Byrne, the chair of the Business and Trade Committee, to offer a direct apology, Ms. Wilkinson responded, “Certainly, you have my apology. I am deeply sorry… I regret that we are no longer able to support these people.”
