Wilko is on the hunt for a £30m cash injection as crippling cost pressures intensify in the run-up to Christmas.
According to The Times, Wilko has entered into crunch talks with lenders after being ”unable to agree to an extension of its revolving credit facility amid a sharp rise in interest rates”.
Wilko chief executive Jerome Saint-Marc said: “We’re taking this opportunity to review how we manage our ongoing financing to best trade through the current retail environment while continuing to invest in our future.”
The family-owned discounter, which employs 16,000 people and trades from 402 shops, brought in £48m by agreeing on a 15-year sale and leaseback deal on its Nottingham distribution centre last week. The deal was struck with logistics provider DHL and Wilko intends to use the cash to pay off its revolving credit facility.
The move comes a month after Retail Week revealed Wilko had drafted in advisory experts from Teneo to cut costs across the business.
Wilko has been battered by the cost-of-living crisis, soaring inflation, shipment delays and store closures during Queen Elizabeth II’s funeral, all of which hit its bottom line.
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