Canadian entrepreneur's last chance
A last gasp effort by Canadian entrepreneur Doug Putman to save UK retailer Wilko has been unsuccessful. Putman, the owner of HMV, was Wilko's last hope for survival, but rising running costs have dashed any rescue hopes.
Facing liquidation
Wilko now faces liquidation after this final attempt to save the struggling chain failed. Putman expressed great disappointment, stating that despite working with administrators and suppliers for several weeks to find a viable way to rescue the business, it had become too difficult due to running costs and suppliers.
Costly legacy supply chain
The retailer's old legacy supply chain would have been too expensive to replace and move to a new system. Putman confirmed he had funds to purchase around 200 Wilko stores and keep the brand name on the high street, but a stable foundation could not be secured for long-term success.
Rivals considering bids for stores
Administrators at PwC will now engage in talks with rival retailers who may be interested in purchasing parcels of Wilko's stores. However, buying the stores may not save jobs, as it may be limited to only acquiring the properties.
Stores shutting and jobs lost
A total of 52 Wilko stores will be permanently closed this week, resulting in more than 1,000 job losses. B&M Bargains has already agreed to buy 51 stores for £13 million, but this deal does not include taking on staff. The Range, Poundland, and Home Bargains have expressed interest in acquiring some of the stores.
Devastating blow to retail sector
The collapse of Wilko is a massive blow to the retail sector and its staff. Experts suggest that the company had been struggling for some time. Last week, 229 jobs were cut at two distribution centers, adding to the total of more than 1,500 jobs lost so far.
CEO expresses gratitude
CEO Mark Jackson thanked staff and customers in an open letter, stating that the company had explored all options in an effort to save the chain.
(Note: This article has been rewritten for a UK audience from an original source.)
