British retailer Wilko, which earlier faced the threat of bankruptcy, will close all stores of the chain by the beginning of October, as a result of which more than 12 thousand company employees may be out of work.
In August, after the failure of negotiations with potential buyers of the business, Wilko went under the external management of administrators from PwC. Still, they managed to find a new owner for only 51 stores out of more than 400 – due to a deal worth 13 million pounds ($16.3 million) part of the outlet’s acquired retailer B&M.
The collapse of Wilko will be the largest such event in the UK in recent years after the bankruptcy of Arcadia Group (owner of brands Topshop, Burton, Dorothy Perkins, etc.) and a network of department stores Debenhams.
Wilko started in 1930 with a hardware store in Leicester. Over 93 years, the chain has grown to hundreds of locations nationwide, offering various household products at affordable prices.
The company has experienced increasing competition recently, resulting in declining sales and exacerbated by other financial difficulties and high inflation. Wilko posted a pre-tax loss of 36 million pounds for 2022.
