Battle to save 12,000 Wilko jobs as administrators weigh rescue offers

Wilko administrators were engaged in bailouts last night in the hope that thousands of jobs could be saved.

The low-cost home goods store plunged into administration last week, leaving 12,000 jobs, 400 stores and the Wilko name in the lurch.

Administrators at PwC set an end-of-trade deadline on Wednesday for offers to save it.

According to a source close to the deal, a “handful” of bids have been made. Administrators are weighing options for creditors in the hope that an agreement can be reached early next week.

A spokesperson for the GMB union, which represents some Wilko employees and is in contact with PwC, said there was “still hope”. The union held its first formal meeting with executives last night.

Potential buyers include rivals B&M European Value Retail, Poundland, The Range and Home Bargains.

But it’s up in the air whether they’ll keep the signature Wilko brand.

Employees are afraid that Wilko’s pension fund will face a large deficit, which could mean that pensioners will receive a lower annual income.

While the scheme may be bailed out by the industry’s lifeboat, the Pension Protection Fund, union leaders and staff are outraged by the bosses’ decisions to pay £77m to the owners and former shareholders over the past decade.

The chain was operated by descendants of its founder, James Kemsey Wilkinson.

The GMB has called on the Wilkinson family to “close the shortfall in the pension pot,” saying that “no employee should bear the burden of bosses’ financial shortcomings.”

Danni Hewson, head of financial analysis at AJ Bell, said: “Market watchers have been watching the smoke signals from Wilko’s managers as the bid deadline came and went.

With thousands of employees anxiously awaiting to find out if they will still have a job at the end of the week, this is a chapter in UK retail that everyone hopes will have a somewhat happy ending, but the paucity of news suggests that the negotiations are difficult. .’