Former Wilko owner does not expect to help fix pension hole, according to new documents

According to new documents, Amalgamated Holdings Wilkinson Limited (AHWL), the parent company of Wilko owned by the Wilkinson family, said its directors “do not believe there is a liability for AHWL in respect to any (pension) deficit arising” after seeking legal advice, the Financial Times has reported.

The UK pensions regulator has been mulling over a decision to take action against the discount chain after it collapsed with an estimated £70.2m pension shortfall, despite paying millions in dividends to the Wilkinson family over several years.

The regulator can chase owners to plug pension holes if they have put pension holders’ savings at risk, but AHWL gave several reasons why it thought it should not be liable.

The directors added that following the administration, they have “considered the possibility of a claim or claims against it” but received “no indication of an actual or potential claim arising from the process to date”. 

In a Companies House filing, AHWL said it has “never been the sponsoring employer for the Wilko pension scheme” and “when periodically asked about dividends, as shareholder, the directors… expressed a view that pension contributions be prioritised over dividends”.

The directors also believed the pension scheme was “appropriately and properly funded”, particularly after Wilko was granted security over £20m of its property and annual contributions increased from £4.75m to £8.4m from 2022. 

The Pension Protection Fund (PPF) could bail out the retailer’s pension scheme, but it told the Financial Times the scheme “remains in assessment” and that it was “working closely” with trustees to make sure members receive the best outcome.

The pensions regulator added that it has engaged with “Wilko, the pension trustees, the administrators and the PPF to make sure members’ benefits are protected” and said it was an ongoing case.