Wilko is set to initiate the first wave of what could be numerous layoffs today, even as prospects for a partial business rescue continue.
Last week, administrators revealed that 269 employees at the company’s Worksop support center would be concluding their tenure with the firm.
Job cuts at the company’s Worksop and Newport storage facilities are also scheduled to commence in the coming days.
The exact number of warehouse employees to be laid off wasn’t specified by the administrators, though it’s estimated that around 1,300 individuals are employed in those locations.
Last week, the GMB union expressed its preference for beginning the layoffs with those willing to volunteer.
However, there remains optimism that the administrators from PwC might broker a deal that could preserve thousands of Wilko jobs nationwide.
Negotiations are ongoing with a potential buyer consortium, spearheaded by Doug Putman, the Canadian entrepreneur who acquired HMV in 2019.
A potential complication might arise from the demands of companies like Unilever PLC (LSE: ULVR) and Procter & Gamble (NYSE: PG) concerning Wilko’s debt settlement.
Sources from The Sun have indicated that the manufacturers of Domestos Bleach and Ariel detergent are not only seeking repayment but also insist on upfront payment for future supplies.
Additionally, apprehensions have surfaced regarding shipments from various suppliers to potentially rescue Wilko stores. Many stopped their deliveries upon hearing of Wilko’s recent plunge into administration, as per the sources.
Last week, a purchase attempt by M2 Capital didn’t materialize, with the private equity firm unable to substantiate the funding for its £90 million bid to acquire Wilko wholly.
On another note, competitors like B&M, Poundland, Home Bargains, and The Range are still negotiating with administrator PwC for the purchase of select Wilko outlets.
