Wilko sale news — Rishi Sunak pledges support to staff as Poundland offers jobs lifeline – plus store closures latest
PRIME Minister Rishi Sunak has pledged his support to the staff at Wilko following the store's collapse.
Speaking during Prime Minister's questions, Rishi Sunak responded to comments made by Tory former minister Brendan Clarke-Smith, who urged the Government to safeguard Wilko redundancies and pensions.
Rishi Sunak said: "I do know that this is a concerning time for workers at Wilko. The Business Secretary is keeping close to developments and we have already started supporting those who have been made redundant, and we stand ready to support others to the fullest of our abilities."
It comes as 400 Wilko shops will shut their doors after administrators at PricewaterhouseCoopers (PwC) announced a deal to save the company fell at the final hurdle.
But now, Poundland has confirmed its intentions to take over up to 71 Wilko stores and potentially bring staff over during the conversion.
Read our Wilko live blog for the latest news and updates...
124 Wilko stores set to close next week - is yours listed?
Wilko will close 124 stores in days - with hundreds more shuttered by October, administrators have revealed.
The bargain retail giant said 38 outlets will close this coming Sunday, September 17 after last ditch rescue talks failed.
A further 38 will close on Tuesday, September 19 followed by 48 more by Thursday, September 21.
‘I will be sad when it closes’
Jean Reynolds, a 68-year-old retired nursing carer, said she is “sad” to see Wilko stores close.
She told PA: “I used to get my bedding and quilts there as prices were reasonable.
“I would take the grandchildren to the cafe.
“I will be sad when it closes.”
Union pins Wilko collapse on owners
The GMB Union, which represents thousands of Wilko workers, has slammed the company's bosses, blaming them for the business' collapse.
In a Tweet, the union said: "Wilko's collapse isn’t a tragedy without cause.
"It was run into the ground by the business owners. No worker caused the downfall of Wilko.
"But they will be the ones who will suffer – all as the owners get off scot-free."
What has the Range said? (2/2)
Mr Dawson, founder and chairman of The Range said: "These are exciting times for The Range Group, I am delighted that Wilko will join our family of companies.
"We will drive it forward as fast as we can as we expand the entire business from our continuing store opening programme to our new 1.2million square foot distribution centre that is being constructed in the south of England."
What has The Range said? (1/2)
Following its purchase of the Wilko name, IP and products, The Range has said it is "delighted" to take over the brand.
Alex Simpkin, chief executive officer of The Range said: "This acquisition comes at a time when consumers are more than ever wanting to shop with confidence for value and quality, we are delighted to have acquired this brand and we will ensure that the Wilko brand will continue to deliver for the UK consumer, both in-store and on-line."
The CEO added that the company is "delighted" to have saved the digital team members' jobs.
What are the holiday pay rights for redundant staff?
You are still entitled to any holiday pay you are owed for untaken holiday days at the end of your notice period.
This includes any holiday allowance you have built up while on furlough.
Alternatively, your employer has to let you take the days off before you leave.
However, if you have taken more days than your annual entitlement then your employer is within their legal rights to dock this from your final pay settlement.
Full list of stores closing next Tuesday
Another batch of Wilko stores will close their doors for good next Tuesday:
- Aberdare
- Alfreton
- Ashby
- Barnstaple
- Belper
- Beverley
- Blackheath-Brigg
- Byker, Chepstow
- Clifton Nottingham
- Colindale
- Devizes
- Didcot
- Earlestown
- East Ham
- Great Bridge
- Greenbridge
- Grimsby
- Hessle Road - Hull
- Jarrow
- Kimberley
- Leighton Buzzard
- Long Eaton
- Maesteg
- Matlock
- Middleton
- Newton Abbot
- Redcar
- Ripley
- Seaham
- Sherwood
- Stamford
- Stevenage
- Swanley
- Tamworth
- Wrexham
- Wythenshawe
Every Wilko store set to close today
- Ashford
- Avonmeads
- Banbury
- Barrow in Furness
- Basildon
- Belle Vale
- Burnley (Relocation)
- Clydebank
- Cortonwood
- Dagenham
- Dewsbury
- Eccles
- Folkestone
- Great Yarmouth
- Hammersmith
- Huddersfield
- Morriston
- New Malden
- North Shields
- Queen Street Cardiff
- Rhyl
- Southampton-West Quay
- St Austell
- Stockport
- Truro
- Uttoxeter
- Walsall
- Woking
What has PwC said about Doug Putman's deal?
The closures come after a deal with entrepreneur Doug Putman, who previously saved HMV, to buy hundreds of stores fell though.
Zelf Hussain from PwC, joint administrator overseeing the closure of Wilko, said: "Despite the significant and intensive efforts of both ourselves and Putman Investments - the remaining party interested in buying a significant part of the business as a going concern...
"A transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable."
Putman was in talks to save around 200 stores and thousands of jobs.
Full list of Wilko stores that will reopen as Poundlands
Here is the full list of Wilko stores which will reopen as Poundland shops in the coming months:
- Aberdare
- Alfreton
- Alnwick
- Altrincham
- Ammanford
- Ashby
- Barking
- Bedminster
- Beeston
- Bicester
- Bishop Stortford
- Bletchley
- Bolton
- Brentwood
- Brigg
- Cambridge
- Chepstow
- Coalville
- Cramlington
- Droitwich
- Eccles
- Edmonton Green
- Ellesmere Port
- Ferndown
- Gateshead
- Grays
- Greenock
- Grimsby
- Havant
- Hayes
- Headingley
- Hessle Road, Hull
- Hillsborough
- Hitchin
- Jarrow
- Killingworth
- Kimberley
- Lee Circle
- Leek
- Leigh
- Lichfield
- Maidenhead
- Matlock
- Melton Mowbray
- Nelson
- Northallerton
- Orton
- Pembroke Dock
- Peterlee
- Pontefract
- Pontypool
- Redhill
- Redruth
- Ripley
- Rugeley
- Sale
- Seaham
- Selly Oak
- Shrewsbury Darwin Centre
- South Shields
- Southport
- Stafford
- Stamford
- Stockport
- Thornaby
- Wellington
- Wembley
- West Ealing
- Wombwell
- Worcester
- Worksop
Wilko name will SURVIVE in deal with discount chain rival – and shoppers will still be able to buy branded goods
Wilko administrators have agreed the sale of the retailer’s brand name to The Range in a £5million deal.
The Range wants to sell Wilko branded goods in its discount stores and potentially keep a website.
However, his retail empire is exclusively on retail parks and Mr Dawson had little interest in taking on Wilko’s shops.
Jane Steer, joint administrator, said: “Since our appointment, the feedback from customers and wider stakeholders during this challenging period has reinforced the fact that Wilko remains a much loved and trusted brand within the UK.
"This sale to The Range will ensure that the Wilko name lives on under their ownership and we wish The Range every success.”
36 Wilko staff will join the Range as part of the sale.
What year was Wilko founded?
Wilko, formerly known as Wilkinson Cash Stores and Wilkinson Hardware Stores is a British high-street retail chain which was founded in 1930.
The shop sells homewares and household goods.
The chain remains in the ownership of the founding family and was established by James Wilkinson.
How much money do I get if I’m made redundant?
You are entitled to statutory redundancy pay if you have worked for your employer for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
Length of service is capped at 20 years.
Poundland purchase could be good news for Wilko staff
Staff could be carried over as part of Poundland's plan to convert up to 71 Wilko stores in the coming weeks.
Poundland’s managing director Barry Williams said: "In the coming weeks we will work quickly with landlords so we can open these stores as Poundlands with the new ranges that have been pivotal to our recent development.
“And once that process is complete, we will ensure a significant number of the Wilko colleagues will join our Poundland team."
Wilko closures are ‘awful’
One shopper in North Shields, where the local Wilko is due to shut its doors on Thursday, described the closure as “awful.”
Retired dinner lady Susan Blacklock, 73, said: “It’s awful, this is a good shop and I come here all the time.
“This is one of the biggest shops in the town centre.
“I come here for things like curtain rails and wallpaper – there’s no other wallpaper shop around here.
“They have built a brand new bus station to come here, but what’s there to come for? Nothing.
“I feel sorry for all the lasses working in there, you get used to seeing them and it’s nice to see them, I just hope they have somewhere to go when they leave.”
Wilko not the only retailer feeling the pinch
Retailers have been feeling the pinch since the pandemic while shoppers are cutting back on spending due to soaring inflation.
High energy costs and a shift to shopping online after the pandemic are also taking a toll and many high street shops have struggled to keep going.
Numerous high street brands have collapsed into administration in the last 12 months.
How much money do I get if I’m made redundant?
You are entitled to statutory redundancy pay if you have worked for your employer for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
Length of service is capped at 20 years.
Who owns Wilko and when was it founded?
Wilko is a British high-street retail chain which sells homewares and household goods.
The company was founded in Leicester by James Kemsey Wilkinson in 1930 and still remains in the ownership of the founding family.
The founder’s son, Tony Wilkinson, joined the company as a branch manager in 1960 before succeeding his father as chairman in 1972.
In June 2005 he was succeeded by his daughter Lisa Wilkinson and his niece Karin Swann.
New approach didn’t follow ‘successful model’
The Wilkinson family were accused of failing to stick by JK Wilkinson’s original low-cost model by a former boss.
Gordon Brown, who was managing director from 1992 to 2007, said: “’Wilko was a convenience store where you went to buy bits and pieces for your house for a low price.’
But he said the management team under Lisa Wilkinson “got into a situation where they were not following their successful model of low price, low cost”.
He added: “They paid consultants who helped them bring about a new format for stores.
“But they were less aggressive on pricing and their approach on the shop floor.”
What has PwC said about Doug Putman's deal?
The closures comes after a deal with entrepreneur Doug Putman, who previously saved HMV, to buy hundreds of stores fell though.
Zelf Hussain from PwC, joint administrator overseeing the closure of Wilko, said: "Despite the significant and intensive efforts of both ourselves and Putman Investments - the remaining party interested in buying a significant part of the business as a going concern...
"A transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable."
Putman was in talks to save around 200 stores and thousands of jobs.
How does administration work?
The administrator will write to your creditors and Companies House to say they’ve been appointed.
They will try to stop the company being liquidated but if they can’t, the administrator will pay as much of the company’s debts as possible from the assets.
The administrator has eight weeks to write a statement explaining what they plan to do.
This must be sent to creditors, employees and Companies House and invites them to approve or amend the plans at a meeting.
Rival chains’ gestures of goodwill to Wilko staff
As well as the news Tesco that are urging Wilko staff to apply for vacancies at the supermarket, a number of other retailers have offered similar gestures of goodwill, with many other rival chains also offering job possibilities to distressed staff.
The Works, Hobbycraft and Dunelm have offered guaranteed interviews to all Wilko staff.
Aldi has asked that any workers affected by the collapse of Wilko to get in touch about jobs.
It said that Aldi has more than 6,000 jobs available at the moment across its UK stores.
Home Bargains urged Wilko workers to “get in touch” or search for available opportunities near you on its careers page jobs.homebargains.co.uk.
Tesco makes heartfelt gesture to Wilko staff as 9,100 jobs to be axed
Tesco has made a heartfelt gesture to thousands of Wilko staff after talks to save hundreds of the historic retailer’s shops fell apart.
The supermarket giant is encouraging devastated Wilko workers to apply for 3,500 vacant roles across the UK.
It comes after Administrators at PwC said that all Wilko’s shops would close by early October, with 9,100 staff set to lose their jobs.
The company’s two warehouses will also close and most of the activities at its support centre will cease.
It said that “extensive efforts” had failed to produce a deal which would save any “significant part” of the Wilko operations.
But Tesco has jumped in to assure Wilko staff that they won’t be left without a job.
What year was Wilko founded?
Wilko, formerly known as Wilkinson Cash Stores and Wilkinson Hardware Stores is a British high-street retail chain which was founded in 1930.
The shop sells homewares and household goods.
The chain remains in the ownership of the founding family and was established by James Wilkinson.
Upcoming store closures
All Wilko stores will close for good by October, administrators announced on Monday.
The first 52 closures began yesterday, with 24 shops shutting for good by the end of the day.
A further 28 sites will close on Thursday this week, resulting in over 1,000 redundancies.
Another 124 stores are set to shut next week in three rounds of closures on Sunday 17, Tuesday 19 and September 21.