Crunch Wilko meeting sparks ‘genuine grounds for hope’ as bids for discount store considered

HOPE remains for the beloved high street chain Wilko after administrators revealed that they are considering several rescue bids.

It comes as the chain launched a huge new sale today with up to 50% off hundreds of items.

The GMB union has said there are “genuine grounds for hope” over the future of stricken retailer Wilko after expressions of interest from potential buyers during the administration process.

“GMB has met with administrators and the company as part of the formal consultation process,” said Andy Prendergast, GMB national secretary.

“We can confirm there have been expressions of interest from organisations who are considering taking over at least some parts of the business.

“These are still at an early stage, but means there are genuine grounds for hope.

“Whilst this process continues staff will continue to be paid and kept on. All stores are continuing to trade, and deliveries of new stock will continue.”

It comes after insiders told The Sun that administrators are assessing a handful of indicative bids.

The deadline for indicative bids to save the chain passed on Wednesday, but sources confirmed that offers would still be considered after the deadline passed.

At the moment, administrator PwC is yet to confirm how many bids have been submitted to rescue Wilko.

Even then, sources said that the bids would take a while to process and that an announcement isn’t expected to take place this week.

Wilko collapsed into administration last week after failing to find new backing for the business.

It puts the chain’s 400 stores at risk of closing and around 12,500 jobs on the line.

The Sun previously reported that several potential buyers have shown an interest in Wilko’s business, one in particular could save as many as 300 branches from closing down and would preserve the most jobs.

But it is understood that early expressions of interest were mixed, and the majority of offers are for between 40 to 50 stores.

Discount retailers B&M, The Range, Poundland and Home Bargains have all expressed an interest, according to sources – but they would have needed to officially throw their hats in the ring today.

The Sun understands one of the potential bidders would be keen to keep the Wilko name.

But even if a buyer is found, the insolvency process means that a buyer can pick and choose the parts of a business it wants.

This means that both the stores and the brand could be saved.

Or it may choose to buy no stores at all and instead buy up the remaining stock or brand name only.

Sources cautioned that no deal is guaranteed.

John Colley, associate dean of Warwick Business School and an expert on mergers and acquisitions, said: “Creditors and employees can only hope that one of these trader buyers was sufficiently interested to make a bid.

“They would be more likely to take the bulk of the stores and employees, and the creditors may see some money eventually.

“If there is little concrete interest from trade buyers, then the company may fall into the hands of Private Equity and the firms which specialise in distressed businesses.

“However they drive a hard bargain and inject limited funds. Creditors and employees might have reason to be pessimistic in such circumstances.”

Sources at both Next and Poundstretcher previously told The Sun that they had no interest in rescuing Wilko.

It comes as shoppers have been sharing their emotional tributes to the discounter, with many comparing it to the loss of Woolworths.

Others were also looking forward to extra bargains ahead of Wilko launching an administration sale this week.

Chief executive officer, Mark Jackson, said last week that the company had “left no stone unturned” in a bid to save the chain.

In an emotional open letter to all staff and heartbroken shoppers, Mr Jackson thanked them for their support.