Wilko administrator sets deadline for interested parties to submit offers

Bidders for Wilko have been given until Wednesday (August 16) to put their offers on the table, according to Sky News.

Many discount retailers and financial investors are mulling over offers but some industry experts think a takeover of the whole business is unlikely and that buyers will seek to buy portions of the business.

Gordon Brothers, Alteri Investors and Opcapita are reported to be considering proposals to invest in the business in a last-ditch attempt to save the 123-year-old retailer.

If a buyer is not found, 400 stores could be lost and more than 12,000 employees are at risk of losing their jobs. Substantial redundancies are probable as the administration process accelerates.

It was also revealed over the weekend that Wilko paid out a total of £77m to the owners and the shareholders in the decade leading up to its collapse.

The largest payout was £63m in 2015 when one side of the Wilkinson family sold their shares to the other. Multimillion pound dividends continued even as the company struggled. 

Wilko’s demise has left the retirement fund with a multimillion-pound shortfall and pensioners could end up with a lifetime of reduced annual income. The scheme is likely to be bailed out by the Pension Protection Fund (PPF). However, workers who have not yet retired could see their pensions reduced.