All 400 Wilko stores to close in October, says union: 9,100 more jobs lost
The agonies of waiting and uncertainty are now over – the entire Wilko retail empire is set to disappear by early next month, the GMB Union has said.
All 400 stores – including the ones in Ely, Bury St Edmunds and Cambridge – plus two distribution centres look certain to close following firstly the collapse of efforts to sell off the whole chain, then efforts to sell off various collections of stores, failed.
Administrators PwC said: “Despite extensive efforts, it has become clear that no significant part of the Wilko operations can be rescued as a going concern. As a result, the joint administrators have today informed all staff that they will sadly commence the closure of all Wilko stores, the two distribution centres and the cessation of the majority of activities of the Support Centre. It is anticipated that all stores will be closed by early October, resulting in the redundancies of a further 9,100 employees in those stores.”
The GMB union, which represents more than 3,000 Wilko staff, revealed the scale of the disaster after a meeting with the retailer’s administrators on Monday morning (September 11).
The union said on Monday that Wilko’s warehouses in Worksop and Newport are now both due to close on Friday, September 15.
It added that a further 124 stores are due to close next week, with these set to shut between September 19 and September 21.
The retailer had already confirmed that 52 stores would shut this week, leading to 1,016 redundancies, with hundreds of other job losses across the business.
It comes after a last-ditch attempt by the owner of HMV to strike a rescue deal for the retailer collapsed. Administrators for the high street chain had been in discussions with Doug Putman, who bought the entertainment chain in 2019, over a deal to buy around 200 Wilko shops.
GMB said the failure to secure a deal meant that remaining offers on the table are only likely to purchase a number of Wilko store properties, and are not expected to include workers.
PwC, who are overseeing the administration, has already agreed a roughly £13million deal to sell up to 51 Wilko stores to rival B&M. Fellow discount retailer Poundland is still in talks with PwC in an attempt to snap up around 100 shops, according to Sky News.
Other high street chains including The Range and Home Bargains have also reportedly signalled their interest over potentially buying the Wilko brand or stores.
Nadine Houghton, GMB national officer, said: “This isn’t a tragedy without cause. Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners.
“Money was siphoned out of the business for dividends, warnings about what needed to be done to save the business were not heeded and advice around what the business had to do to thrive was not listened to.
“No worker caused the downfall of Wilko. But they will be the ones who will suffer – all as the owners get off scot-free.
“GMB will not stop campaigning for the owners of this debacle to be held to account.”
Wilko entered administration early last month after it came under pressure from weak consumer spending and debts to suppliers.
Labour’s shadow business secretary Jonathan Reynolds said: “This is heartbreaking news for staff and their families who have been holding out hope of a deal that would protect their jobs.
“Sadly, shuttered-up shops have become the norm under the Conservatives who have weakened the foundations of our economy with local high streets paying the price.”
