Huge new blow for Wilko as creditors face vast losses with 400 stores closing & jobs axed

WILKO’s creditors are facing vast losses – with 400 stores closing and thousands of jobs axed.

The chain went into administration last month after its coffers were drained by inflation.

Its remaining stores are set to shut their doors in October – 90 years after the Wilkinson family opened its first homeware shop.

Now reports that unsecured creditors could get back as little as 4p of every pound Wilko’s owners owe them.

Accounting giant PricewaterhouseCoopers told unsecured creditors that they are likely to recover between 4 and 8 per cent of their debts.

The Wilkinson family are facing calls to return some of the millions they siphoned from the company in dividend payments.

Between January 2019 and February 2022, the family received dividends adding up to a whopping £9million.

The most recent shareholder payout, totalling £750,000, was made in February last year.

More than 12,000 high street jobs are expected to be lost when Wilko folds next month.

Discount-store rivals Poundland, B&M and The Range carved up Wilko’s sites and online assets – but no deal was reached to protect workers.

A rescue bid led by HMV supremo Doug Putman fell apart just over two weeks ago.

Major creditors Barclays and Hilco UK are expected to be repaid in full the £2.4million and £39.9million they are each owed.

The industry-funded Pension Protection Fund will also recover the £20million it is owed as a secured credit – but could lose the millions more it is owed as an unsecured one.

PricewaterhouseCoopers declined to comment when contacted by journalists.