Wilko redundancies to go ahead as rescue bid collapses

M2 Capital put in a bid to buy the entire Wilko business on Friday but this has fallen through following talks with administrator PwC.

PwC said in a statement: “While discussions continue with those interested in buying parts of the business, it is now clear that no viable offer structure put forward includes the group in its entirety.”

The administrator has confirmed that, from September 4, 269 support centre team members will be made redundant, with further redundancies expected from early next week. The exact numbers will be confirmed.

A further 14 employees from Kin Limited, a subsidiary of Wilkinson Hardware Stores, will be made redundant on September 4.

PwC joint administrator Jane Steer said: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.  

“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. 

“Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.

“We will be circulating correspondence to all staff as soon as possible, which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Jobcentre Plus and other agencies.” 

Last-minute rescue

M2 Capital, fronted by former metals banker Robert Mantse, put in a £90m bid that would buy the entire company and keep employees’ jobs for two years.

The company was given until 5pm on Wednesday 30 August to prove it had the funds to buy Wilko and PwC refused to grant any extra time.

M2 Capital had claimed it was raising funds from billionaire Michael Flacks in order to rescue the retailer, but Flacks told The Sun last night that he had “no interest” in backing a takeover and that Wilko “should have died years ago”.

Other bids for parts of the business have been received and are currently being considered.

Rival value retailers B&M and Poundland, and HMV owner Doug Putman are also said to have made offers.

GMB union, which is representing Wilko employees, is said to be in further talks with PwC on Thursday.

Retail Week has reached out to PwC, GMB and M2 Capital for comment.

• ‘Wilko’s demise doesn’t mean the death of the high street’