Wilko staff to be informed about job losses with 52 stores set to close next week
A deal to buy only one in eight Wilko stores has been agreed as programme of job losses continues. Business Editor Joel Hills on the uncertain future for remaining Wilko staff
Staff working for stricken high street retailer Wilko will be informed about job losses this morning after confirmation yesterday that 1,332 workers will be made redundant and 52 stores will close.
Administrators said 24 of the affected shops will close on Tuesday, September 12, and the remaining 28 will be shut two days later.
This will lead to 1,016 redundancies, GMB said.
The job losses also include 299 at the company’s two warehouses.
There will be a further 17 redundancies among the company’s digital team at its support centre.
Edward Williams, joint administrator at PwC, said the decision was "necessary" as there was "no viable offers" to buy the whole business.
'The news is disappointing but there is still hope' - ITV News Business and Economics Editor Joel Hills reports on the Wilko job losses
He added: “We know this has been a deeply unsettling time for everyone concerned and would like to express our gratitude to all Wilko team members for the dedication and support they have continued to give the business in the most trying of circumstances.”
The redundancies are in addition to the 269 announced last week at the company's support centre at its Worksop head office.
On Monday, B&M announced it had agreed to buy up to 51 of Wilko stores from administrators for £13 million.
“The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances,” B&M European Value Retail said in an update to investors on Tuesday.
Currently, the future of the 1,000 staff who work at the 51 Wilko shops is uncertain and B&M will not confirm if it will transfer along with the leases.
The details on when the new B&M-owned stores will open is to come alongside the company's half-year financial results on November 9.
It is understood that the majority of the new stores are expected to rebrand as B&M.
The group runs around 1,150 stores in the UK and France under the B&M and Heron brands.
Thousands of Wilko employees are facing redundancy after the company went into administration in August - requiring fewer staff members in its warehouses while it slowly runs down stock.
Administrators from PwC remain in further talks regarding Wilko’s remaining stores, brand and other assets.
It comes after a bid from HMV buyers, M2 Capital, to purchase the entirety of the collapsed high street retailer fell through on Thursday last week.
It is understood owner Doug Putman, is still in talks with administrators over a deal.
His original plans to buy around 300 stores were however impacted by difficulties related to Wilko’s debts to suppliers.
The chain was founded in Leicester with the first shop opening in 1930, and since then has grown to more than 400 stores across the country.
All stores are currently trading and remain open.
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