Wilko, the high street discount chain, has plunged into administration, putting 12,000 jobs at risk after it failed to secure a rescue deal.
The low-cost retailer, which is privately owned and has about 400 stores, has appointed PwC after potential buyers withdrew their interest in recent days.
In an open letter to staff, its chief executive Mark Jackson said: “While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, without the surety of being able to complete the deal within the necessary time frame and given the cash position, we’ve been left with no choice but to take this unfortunate action.”
The company, which sells everything from stationery to hardware, warned it was at risk of insolvency on August 3 amid “mounting cash pressures”, and filed a notice of intention to appoint administrators. This gave it 10 working days to find a buyer for or all or part of the business, with a deadline of Aug 17.
Mr Jackson added: “We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
The investment firm Gordon Brothers – the owner of Laura Ashley – is one party understood to have held talks with Wilko’s advisers about a potential rescue deal to salvage the business.
Wilko was founded in Leicester in 1930 by James Kemsey Wilkinson and his fiancée.
It was renamed Wilko in 2014 when Karin Swann, part of the third generation of the family to run the business, sold her stake to her cousin Lisa Wilkinson and her side of the family, which included Tony Wilkinson, the son of founder James.
