Wilko has completed the sale and leaseback of one of its distribution centres as it struggles to shore up its balance sheet after a bruising trading period.
Retail Week can reveal the embattled value operator has sold its distribution centre in Worksop, Nottinghamshire, to logistics giant DHL for £48m. It has leased the site back on a 15-year agreement.
The move comes a month after Retail Week revealed that Wilko had drafted in advisory experts from Teneo to cut costs across the business in the face of the cost-of-living crisis.
Wilko has been battered by the crisis, soaring inflation, shipment delays and store closures during Queen Elizabeth II’s funeral, all of which hit its bottom line.
The retailer said the £48m will now be put back into the business to improve the proposition and customer experience across its 402 stores and online.
It added that the partnership with DHL will not affect day-to-day operations at Worksop and it means both organisations can “benefit from scale in property and warehousing”.
Wilko chief executive Jerome Saint-Marc said: “It’s standard business practice to constantly review how we manage our finances. This property deal with DHL represents long-term stability for us and our team members and is the right response to the current market conditions and our priorities.
“We’re making smart choices to trade a business and allow us to continue to invest in our long-term transformational strategy. Wilko remains family-owned and continues to focus on helping hardworking families to be the best that they can be, delivering great value products to our customers.”
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