Wilko CONFIRMS first job cuts as rescue bid for entire chain collapses – and stores will shut too
WILKO today confirmed the first job cuts as a rescue bid for the entire chain has collapsed.
Administrators at PwC have announced that hundreds of workers will be made redundant after an attempt to save to whole business failed.
The decision has been made to axe a total of 269 support centre team member roles.
A further 14 jobs at Kin Limited, a subsidiary of Wilko, will also be made redundant.
These redundancies will come into effect from the end of the day on Monday, September 4.
More job losses are expected at distribution warehouses soon, with union GMB stating that these will start next week.
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A spokesperson said: “As a result of this unwelcome development, the redundancy processes which were paused two days ago are set to restart almost instantly.”
GMB said it remains hopeful that there is a “viable buyer on the table” which could protect staff in stores and online, but that it must “continue to prepare for the worst”.
Jane Steer, joint administrator, said: “It’s with great sadness that we announce these redundancies.
"We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.
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“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work."
Ms Steer went on to say that PwC's priority is to ensure all team members affected by redundancy are assisted in processing their claims as quickly as possible.
Information will be sent to all staff outlining the support available to complete redundancy payment forms.
"Advice and assistance will also be available from Job Centre Plus and other agencies," Ms Steer said.
The news comes after The Sun exclusively reported that the only bid for the whole of the business, from M2 Capital, fell through.
The relatively unknown private equity firm, made an eleventh-hour offer of £89million to buy Wilko last Friday.
Administrators had given it until 5pm yesterday to provide evidence that it has proof of funds to complete the full rescue of Wilko.
PwC then refused to grant M2 Capital extra time after grave doubts about its credibility.
One source close to the process said that his involvement had wasted time and was too speculative to be taken seriously.
Further bids remain on the table, one in particular from HMV owner Doug Putman.
It marks the second time a deadline for Wilko buyers has passed, three weeks after the retailer went bust.
A deal would potentially see him take on the majority of stores and Wilko's brand name, but not its distribution centre or headquarters.
It is understood Mr Putman has made multiple, different offers.
Even if Mr Putman's or other bids go through, some Wilko stores will still be forced to shut for good.
All of the chain's 400 sites are currently trading and remain open as normal.
Discounters B&M, Poundland, Home Bargains and The Range have made offers for some of Wilko’s stores.
Poundland's owner, Pepco Group, is said to be looking at taking on 100 Wilko stores, according to
B&M European Retail is also in negotiations to purchase between 40 and 50 shops, according to one insider.
The Original Factory Shop (TOFS) and other value retailers have also lodged offers to acquire a smaller number of sites.
Wilko tumbled into administration earlier this month, putting the future of its shops at risk, as well as the jobs of 12,500 workers.
Founded by James Kemsey Wilkinson in 1930, the company’s first store opened on Charnwood Street under the Wilkinson Cash Stores brand.
In an emotional interview, Lisa Wilkinson, granddaughter of the chain's founder, said that everybody put their "soul and heart" into saving the chain.
Your rights in redundancy
Companies can choose to cut their workforce and employees should understand their rights.
You are entitled to statutory redundancy pay, but only if you have worked at your job for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
But it's capped at 20 years and the max redundancy pay you can get is currently £16,320.
Some companies may offer to pay more than the statutory amount. This will usually be in your contract.
Plus, you are still entitled to any pay you are owed for untaken holiday days at the end of your notice period.
The government has a how much you are owed.
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Meanwhile, we have put together a to devastated Wilko staff.
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