Major high street store could be saved from collapse as last-ditch rescue bids launched
Administrators are now facing pressure to accept one of the bids
PA
A major chain of high street stores could be saved from the brink of collapse after last-minute rescue bids were launched.
Wilko collapsed into administration earlier this month putting 12,500 jobs at risk.
There are over 400 Wilko stores across the UK's high streets.
M2 Capital has now submitted a last-minute white knight bid worth a reported £90m to save the firm.
There are over 400 Wilko stores across the UK's high streets.
PA
Wilko's administrators are now facing pressure to accept one of the bids.
M2 Capital is a restructuring specialist that owns a string of upmarket hotels around the world under the Como brand.
The owner of HMV has also submitted a bid to buy Wilko.
Doug Putman pledged to keep 350 of the stores trading under the Wilko brand and pay off £40m of debts.
Putman rescued HMV from administration in 2019.
However, while talks are still ongoing with administrators PricewaterhouseCoopers (PwC), sources have claimed that Putman's takeover is "unlikely".
PwC is considering all the offers they have received and is expected to make a decision on Wilko's future in the coming days.
Andy Prendergast, the national secretary of the GMB union, which represents thousands of Wilko staff, said it would be "a disgrace" if bids were rejected despite the fact they could save jobs.
He said: "12,500 jobs cannot be sacrificed for a few pence in the pound for creditors.
"If there are viable bids that protect jobs, these have to be prioritised."
PwC is considering all the offers they have received and is expected to make a decision on Wilko's future in the coming days.
PA
Earlier this month, Mark Jackson, chief executive officer of Wilko, said that the firm went into administration despite receiving rescue offers after being unable to close a deal within time.
Jackson said: "While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, 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."
In a letter, Jackson wrote: "Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
"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."
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