Major Wilko rivals including Poundland and B&M in talks to buy stores – as chain says shops WON’T close next week
MAJOR Wilko rivals including Poundland and B&M are reportedly in talks to buy stores after the chain said shops will not close soon.
The news comes after administrators at PwC, who now control Wilko, denied claims that stores could close as early as next week.
Wilko announced earlier this month that it was going into administration, putting 12,500 jobs and its 400 stores at risk.
Now, PwC administrators are said to be in advanced talks to sell parts of the chain, with Poundland's owner, Pepco Group, in discussions to take on around 100 stores, reports
B&M European Retail is also in negotiations to purchase between 40 and 50 shops, according to one insider.
Sky has also reported that The Original Factory Shop (TOFS) and other value retailers have lodged offers to acquire a smaller number of sites.
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Even if agreements with Pepco, B&M and TOFS are finalised, it is likely to mean that more than 200 Wilko stores will face permanent closure.
The potential buyouts could see over 6,000 jobs lost with retail sources claiming an announcement may be made by PwC tomorrow outlining sale agreements with some of the bidders.
PwC today clarified that "contrary to speculation, there are currently no plans to close any stores next week."
The company did go on to say that the situation means that it is "therefore likely" that redundancies and store closures will be made.
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Earlier the union representing over 3,000 workers at Wilko said the majority of stores are to close "in a week" after a purchase fell through.
GMB Union said that attempts to rescue the high-street retailer had fallen through.
And they claimed that redundancies could come as early as next week.
However, the joint administrators, Jane Steer, Zelf Hussain and Edward Williams of PwC, told The Sun: “Since our appointment as administrators of Wilko we have held extensive discussions with parties who expressed an interest in buying all or part of the business".
"While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole Group.
"Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives"
"We know this will further add to the uncertainty felt by workers. We will be supporting staff through this deeply unsettling time, working closely with the government, JobCentre plus, unions and large employers to maximise possibilities for a rapid return to work for employees in the event of redundancies."
“In the immediate term, all stores remain open, continue to trade and staff continue to be paid.
"Contrary to speculation, there are currently no plans to close any stores next week.”
Andy Prendergast, GMB National Secretary, said: "GMB Union will continue to support members through this process and will fight to ensure members are consulted as per the law and that you receive every penny you are entitled to.
"We will fight to ensure Wilko bosses are held accountable for the simple reason our members deserve so much better.
"GMB will not forget the incompetence that has led to this collapse and will we not forget the dividends paid to the millionaires who gambled your jobs on their whims."
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After the collapse of Woolworths in 2008, Wilko - which is still family run - stepped up to fill the gaps left on High Streets.
But it has been struggling with sharp losses and a cash shortage.