LONDON (Reuters) – The majority of British homeware and household goods discount retailer Wilko’s stores are to close in the coming days after a purchase fell through, the GMB trade union said following a meeting with administrators on Wednesday.
The family-owned retailer said earlier this month it had fallen into administration, putting its 400 stores and 12,500 jobs in danger if a buyer could not be found.
“In a meeting with administrators today GMB Union was informed there is no longer any prospect that the majority of the business will be saved,” the union said.
“This means redundancies for staff in store and at call centres will begin during the coming week.”
The union said some stores may be bought either individually or as part of larger packages, but significant job losses were expected.
Administrator PwC did not immediately respond to a request for comment.
Wilko, which sells everything from hardware goods to cleaning products, toys and gardening equipment, has an annual turnover of 1.2 billion pounds ($1.53 billion).
It started in 1930 as a single hardware store in Leicester, central England, but fell victim to Britain’s tougher economic environment and cost of living crisis, grappling with high inflation and 14 consecutive interest rate rises since December 2021.
($1 = 0.7862 pounds)
(Reporting by Kylie MacLellan; editing by David Evans)
