First Job Cuts Confirmed
Wilko has confirmed the first job cuts as a rescue bid for the entire chain collapses. PwC, the administrators, have announced that hundreds of workers will be made redundant after attempts to save the whole business failed.
Support Centre Roles Axed
A total of 269 support centre team member roles will be cut, while a further 14 jobs at subsidiary Kin Limited will also be made redundant. These redundancies will take place from the end of the day on Monday, September 4.
More Job Losses Expected
Job losses at distribution warehouses are expected to follow soon, with the union GMB stating that these will start next week. The GMB remains hopeful that a "viable buyer" could protect staff in stores and online, but says it must "prepare for the worst".
PwC's Commitment to Support Staff
Jane Steer, joint administrator, expressed sadness at the redundancies and thanked the affected team members for their support and dedication. She pledged to support staff during this period of upheaval and help them find new employment as quickly as possible.
Failed Rescue Bid
The bid for the entire Wilko business from M2 Capital has collapsed, leading to further uncertainty for the chain. PwC rejected the bid after doubts were raised about M2 Capital's credibility. Other bids, including one from HMV owner Doug Putman, are still being considered.
Wilko Stores at Risk of Closure
Even if a buyer is found for Wilko, some stores will still face permanent closure. Discounters such as B&M Bargains, Poundland, Home Bargains, and The Range have made offers for some of Wilko’s stores. Poundland’s owner is reportedly looking to take on 100 Wilko stores, while B&M European Retail is in negotiations to purchase between 40 and 50 shops.
Wilko's History and Founder
Wilko, founded by James Kemsey Wilkinson in 1930, is a UK chain store that currently has 400 outlets. After falling into administration, the future of the company and the jobs of 12,500 workers are at risk.
Redundancy Rights for Employees
If a company decides to cut its workforce, employees are entitled to statutory redundancy pay. The amount of pay depends on factors such as age, weekly pay, and the number of years in the job. The maximum redundancy pay is currently £16,320, but some companies may offer to pay more than the statutory amount. Employees are also entitled to any unpaid holiday pay at the end of their notice period.
List of Retailers Offering Jobs to Wilko Staff
A list of retailers offering jobs to Wilko staff affected by the job cuts and potential store closures is available. This will provide options for those looking for new employment.
Follow our live blog for the latest updates on the situation at Wilko.
