Wilko redundancies to ‘restart tomorrow’ if rescue bid for chain’s stores and workers fails in HOURS
REDUNDANCIES are set to “restart tomorrow” if a rescue bid for Wilko’s stores and worker fails as the deadline for offers looms.
Wilko tumbled into administration two weeks ago, putting the future of its 400 shops in doubt and the jobs of 12,500 workers.
Administrators from PricewaterhouseCoopers (PwC) have sought offers from interested firms in an effort to save jobs and stores.
Today, The GMB union told its members that redundancies are “likely to be restarted tomorrow”, according to Sky News.
It comes as PwC gave a deadline of 5pm today for private equity M2 Capital to provide evidence that it has proof of funds to complete a rescue of the bust retailer.
In a letter to members, GMB said: “We met PwC today at 10.30am. In the meeting they advised that the company were still actively assessing a number of bids.
“However, they also advised that the bid which had been received for the entire business has yet to pass basic checks.”
It added that it could not “guarantee” the future of any jobs.
M2 Capital, a relatively unknown firm, made an eleventh-hour offer of £89million to buy Wilko last Friday.
The surprise offer puts it against competition from Doug Putman, owner of HMV, who has said he will keep stores, jobs and the brand name.
GMB had previously urged administrators to explore all offers by potential bidders, especially M2 Capital’s which says that it would preserve all 12,500 jobs and stores.
On Tuesday the business said that redundancy plans would be paused while it considered offers.
Administrators are likely to proceed with other bidders if M2 Capital cannot give them confidence about its financing by the deadline.
Wilko fell into administration more than 90 years after the chain began as a single hardware shop in Leicester.
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.
Meanwhile, we have put together a full list of retailers offering jobs to devastated Wilko staff.
Plus, workers have make a desperate request to shoppers ahead of potential store closures.
Meanwhile, we have put together a full list of retailers offering jobs to devastated Wilko staff.
Plus, workers have made a desperate request to shoppers ahead of potential store closures.
To keep up to date with the latest on Wilko follow our live blog.
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