Wilko on brink of collapsing as firm hurtling towards insolvency without rescue deal

A source described administration on Thursday as “inevitable”, according to Sky News.

Wilko has found itself on the verge of insolvency for weeks, and last Thursday the high street giant announced last week it was on the brink of administration.

It submitted a notice of intent to the High Court, giving it 10 working days of protection from creditors.

It has since been racing to find a buyer amidst falling profits.

Earlier this week, A specialist investor which focuses on struggling retailers, has been in talks with the chain about a possible deal.

Gordon Brothers, the specialist investor, rescued Laura Ashley from collapse in 2020.

On Tuesday, CEO Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present. Unfortunately, with this in mind, today we’re having to take the difficult decision to file a NOI.

“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible. We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”

However, these hopes seem to be diminishing, as PwC will look to liquidise the 93 year-old firm.

As it hurtles towards potential liquidation, Wilko has also temporarily stopped processing online deliveries.

Their decision to suspend one of their key services means that many customers will be unable to buy from the retailer.

Now shoppers are only given the option to use click and collect, which leaves shoppers who live far away from a store, unable to make any purchases.

The retailer recently extended their home delivery contract with GXO until June 2026, yet shoppers are presently unable to purchase from the site.

The click and collect service accounted for 42 per cent of Wilko’s online sales, said the chain’s bosses in February.

Wilko hired PwC as its advisors, earlier in the year, in hopes to find a buyer.

Hilco, the owner of Homebase, lent Wilko £40million earlier this year to help try and salvage the company's future. The firm recently amended the terms of their agreement to continue to help the struggling chain.