Wilko: Over 200 job cuts confirmed after M2 Capital drops out of bidding race
Administrators for Wilko confirmed today that over 200 jobs will be lost after M2 Capital’s bid to buy the entire group timed out this morning.
“It is now clear that no viable offer structure put forward includes the group in its entirety,” Administrators at PwC said in a statement.
As a result, PwC said that 269 staff at Wilko’s support centre team will be made redundant.
It also warned that further redundancies across its two distribution centres will be made from early next week, however it was yet to confirm the exact number.
The update comes after City PM revealed this morning that M2 Capital missed a deadline to submit documentation to prove it has the funds to stay in the bidding process. The private equity firm had intended to purchase the chain’s 400 stores, giving hope to its 12,500 staff members that they would keep their jobs.
PwC said, however, that talks with parties who were interested in buying part of the business were ongoing.
Canadian businessman Doug Putman – who previously snapped up the beleaguered record and music merchandise retailer HMV in 2019 – is interested in acquiring some 350 Wilko stores.
Both B&M and Poundland’s parent company, Pepco, have also reportedly expressed interest in snapping up some of Wilko’s stores.
“A slimmed down Wilko, without the weight of underperforming shops dragging it down, still has a small chance of survival. The brand is still strong and it has been a draw for value conscious shoppers, but it’s going to be an uphill struggle,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.
“If Mr Putman doesn’t come through as a white knight, rivals are likely to pick over the scraps and buy up some of the more popular shops into their portfolios,” she said.