Major Wilko update as firm asks to extend bid deadline – sparking hopes ALL jobs and stores could be saved
THE private equity firm circling Wilko has asked for a two-day extension to a bid deadline, extending the uncertainty faced by 12,500 workers.
M2 Capital, a firm led by former metals banker Robert Mantse and without any previous retail experience, made a late offer to rescue Wilko last week.
Administrators at PwC have been sceptical about the credibility of M2 Capital, which had resisted several requests to show proof of funds or a business plan for Wilko.
PwC had given M2 Capital a deadline of 5pm yesterday to provide the basic necessary documents to be taken as a serious buyer.
Sources told The Sun that there was a call between both sides yesterday morning, which led to the firm being given access to Wilko’s “data room” – a term given to a virtual treasure trove of financial documents in deals.
Sources said M2 Capital has asked for a further two days to review the terms of Wilko’s 400 shop leases.
It has been reported that M2 Capital is raising funds from British born, Florida-based entrepreneur Michael Flacks.
Mr Flacks last night told The Sun that he was “not interested”.
He said of efforts to save Wilko “let it die”.
Mr Flacks had previously tried to buy Laura Ashley in 2019 before it went bust.
A source said that PwC had not ruled them out of the process and talks are still ongoing.
It will mean the second time a deadline for Wilko buyers has passed, almost three weeks after the retailer went bust.
Around 12,500 jobs are hanging in the balance with administrators warning there will likely be redundancies if a buyer for the entire business is not found.
The GMB union said last night that while there were “bids on the table for a significant proportion of the stores and the online business, we still cannot guarantee the future of any jobs moving forwards at this point.”
The private equity firm is competing with rival interest from HMV owner Doug Putman and offers from discount chains Poundland, B&M Bargains and The Range to buy some of Wilko’s stores.