UK retailer Wilko to shut all stores, putting 12,500 jobs at risk: Report

Following a failed revival plan for the business, hardware store Wilko will no longer be seen on the UK high streets. According to the GMB union, all 400 of its outlets will closed by the beginning of October, implying that all 12,500 employees at the family-run company face the possibility of layoffs.

Although certain parties are interested in renaming their stores, it is understood that no bidders are interested in operating stores under the Wilko name, the BBC reported on Monday.

Doug Putman, the owner of HMV, attempted to keep up to 300 Wilko stores operating, but his plan failed due to mounting prices. Following an announcement by administrators PwC that 52 stores nationwide will stop operating on Tuesday and Thursday, the first Wilko locations will close this week.

Between September 17 and 21, 124 additional stores, including ones in Maidenhead, Bognor Regis, and Humberstone, Leicestershire, will close. PwC stated that the final 222 Wilko stores will close at various times, with the last day of business for the distribution centre being September 15.

With the high cost of living causing consumers to look for deals, Wilko has battled against fierce competition from competing chains including B&M, Poundland, The Range, and Home Bargains.

In a $13 million transaction, B&M has announced that it will acquire up to 51 of Wilko’s 400 stores. The stores will be renamed as B&M shops, according to the BBC. However, it is yet unclear whether any jobs will be preserved or whether Wilko employees would be given preference if they apply for positions at the B&M shops.

In traditional town centres, High Street locations are home to many Wilko stores. The transition to larger retail parks and out-of-town options with greater room since the epidemic has benefited its rivals like B&M, even though these sites are convenient for customers without cars.

Poundland is rumoured to be interested in expanding its portfolio by purchasing up to 70 additional locations.

The Wilko name is still up to be taken, with stores like The Range putting forward offers just for the name.

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