Britons react to Wilko's collapse: 'The high street is dying!'
Wilko began as a single hardware shop in Leicester in 1930, growing to 408 stores
GBNEWS/PA
Britons have reacted with a mixture of sadness and frustration at the news of Wilko’s administration, as many see the collapse as symptomatic of a dying high street.
The homeware retailer appointed administrators on Thursday after failing to secure a rescue deal.
Operating 400 stores across the UK, the move puts around 12,000 jobs at risk.
When informed about Wilko filing for administration, one shopper told GB News: “The world is going crazy because everywhere is closing down.”
The homeware retailer fell into administration on Thursday.
GBNEWS
They reflected on Wilko as an outlet that was “good for everything,” from packaging materials to Italian cakes.
A second passerby said: "It is a great pity to close shops because the high street is dying."
Another customer lauded Wilko’s welcoming position on shoppers accompanied by dogs, and also linked the chain’s demise to a wider deterioration of the high street.
They said: “I think it’s really sad. I hate the way all the high streets have collapsed and degraded.
“The move to everything online that became so dramatically sped up during the lockdown means that all the daily interactions in shops stop.”
The Bank of England has increased the base rate 14 consecutive times since February 2022, in an attempt to ease high inflation.
GBNEWS
The chain sells a wide range of products from cleaning essentials and stationary to garden furniture.
GBNEWS
They added: “[Wilko] has been there all my life and I feel very sorry about it. The staff are absolutely lovely here and I worry about them.”
Some Britons appear resigned to the death of brick and mortar shops, with one passerby telling GB News: “There's so many things closing down now that we just have to take it as it comes.”
Another member of the public who shops at Wilko weekly retained hope that a last ditch deal could keep the company afloat.
They said: “I feel sad. I love Wilko, I’m hoping that they are not going to close.”
Mark Jackson, chief executive officer of Wilko, said the firm had received rescue offers and believed it would be able to “recapitalise the business”.
LATEST DEVELOPMENTS:
Wilko runs 400 stores across the UK.
GBNEWS
However, Jackson explained: “Without the surety of being able to complete the deal within the necessary timeframe, and given the cash position, we’ve been left with no choice but to take this unfortunate action” after being unable to close a deal within time.”
He added: “We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.
The high street chain has appointed administrators from PwC.
Tom Davey, director and co-founder at Factor Risk Management said: “The predicted perfect storm of rising prices coupled with higher mortgage rates has finally hit UK consumers' spending power, with nasty knock-on effects for the retail industry."
The Bank of England has increased the base rate 14 consecutive times since February 2022, in an attempt to ease high inflation.
You may like
