Time Running Out for Potential Buyers
Wilko's competitors have just hours left to submit bids to rescue the struggling high street brand. With the deadline set for the end of the day, interested parties must act quickly to issue a rescue offer.
Administrators Set a Deadline
Last week, Wilko collapsed into administration after failing to secure new funding. Now, administrators at PwC have given potential buyers until the close of business today to submit indicative offers, with plans to announce a shortlist for second-round bids by Friday.
400 Stores and 12,500 Jobs at Stake
If a buyer cannot be found, Wilko's 400 stores may close, putting around 12,500 jobs at risk. However, there are potential buyers showing interest, with one bidder looking to save up to 300 branches and preserve a significant number of jobs.
Discount Retailers Interested
Discount retailers B&M, The Range, Poundland, and Home Bargains have all expressed interest in acquiring Wilko. However, they must officially submit their bids before the deadline today. Sources suggest that one of the bidders is particularly keen on keeping the Wilko name.
Parts of the Business Can Be Saved
If a buyer is found, they may have the option to choose which parts of the business they acquire. This means that both the stores and the brand could be saved. Alternatively, a buyer may choose to only purchase the remaining stock or brand name.
No Deal Guaranteed
While there is interest from potential buyers, there is no guarantee that a deal will be reached. If no bid is offered by the deadline, Wilko could face going into liquidation, resulting in the closure of all stores and the loss of all jobs. However, PwC has the power to extend the deadline if necessary.
Rival Discounters Unlikely to Make Offers
Dunelm, Frasers Group, and Iceland are unlikely to make offers to save Wilko. Dunelm prefers a "wait and see" approach regarding store acquisitions, while Frasers Group has "little interest" in bidding for Wilko. Iceland, on the other hand, may consider buying a few stores that become vacant due to Wilko's collapse.
A Difficult Road Ahead
Experts in the retail industry believe that reaching a deal to save Wilko's stores may be challenging. Unlike rival discounters, most of Wilko's stores are located on the high street, which attracts fewer shoppers and has higher rent costs. This makes them less appealing to potential buyers.
Impact on Shoppers
As the future of Wilko hangs in the balance, shoppers have been sharing their emotional tributes to the retailer. Some have compared the potential loss of Wilko to the closure of Woolworths. Meanwhile, others are taking advantage of last-minute deals and empty shelves as they visit the stores.
