British retailer Wilko goes under, putting 12,500 jobs at risk

British home goods retailer Wilko announced Thursday that it has gone into receivership, putting its 400 stores and 12,500 jobs at risk if a buyer is not found.

The family business has requested protection from its creditors after failing to obtain emergency financing, after suffering a liquidity crisis due to the drop in its sales.

“We have spared no effort in preserving this incredible business, but we must admit that, with great regret, we have no choice but to make the difficult decision to enter bankruptcy“, said Mark JacksonCEO of wilko.

Trustee PwC said the retailer’s stores would continue to operate without immediate layoffs, while talks with stakeholders continue.

However, PwC warned: “If no buyers are found for part or all of the group, store closings and layoffs are likely.”.

wilkowhich sells everything from hardware to cleaning products, toys and garden supplies, has an annual turnover of 1.2 billion pounds ($1.53 billion).

This is the biggest bankruptcy in the British retail sector since the bankruptcy of the chain of stores McColl’s in May of last year. McColl’s was later bought by the supermarket group Morrisons.

wilko started in 1930 as a single hardware store in Leicester, central England, but fell victim to Britain’s tightening economic environment and cost-of-living crisis, dealing with high inflation and 14 consecutive interest rate hikes since December 2021.

Source: Reuters