Wilko teeters on brink of administration putting 12,000 jobs at risk

In a statement, Wilko said that while it had had a “significant level of interest, including indicative offers that we believe would meet all of our financial criteria to recapitalise the business… we don’t today have an offer that provides necessary liquidity in the time we have available”.

The retailer pointed to “mounting cash pressures we’re faced with” as the reason for appointing administrators today, putting some 12,000 jobs at risk.

The statement added that the retailer would “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”.

Under chief executive Mark Jackson, Wilko said it had a “robust turnaround plan, with significant restabilisation cost savings in progress”.

The business has an annual turnover of more than £1.2bn and operates more than 400 high street stores across the UK.

Wilko has not said whether any jobs will be affected by the administration. 

The business has been struggling for much of the year and had previously eyed up a potential CVA  in which some of its landlords would receive no rent for three years.

Wilko had drafted in property adviser CBRE in preparation for the talks.

Since Jackson joined the retailer at the beginning of the year, it has been in full cost-cutting mode and has slashed 400 jobs.

Jackson has also strengthened the management team and won the financial backing of Hilco after swinging to a loss last year.