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Poundland and B&M set to buy some Wilko stores but most face closure

Published 24/08/2023, 07:23
Updated 24/08/2023, 07:40
© Reuters.  Poundland and B&M set to buy some Wilko stores but most face closure

Proactive Investors - The majority of Wilko stores are expected to close with the loss of thousands of jobs after administrators failed to find a buyer for the collapsed retailer.

Administrators from PricewaterhouseCoopers said on Wednesday evening that it was “likely that there will be redundancies and store closures in the future” as they had not found a buyer for the whole group.

The family-owned household and garden products retailer, which has about 400 stores and employs almost 12,500 people, was forced to call in administrators this month.

However, the administrators said stores would remain open for now, with no immediate job cuts or store closures as “discussions continue with those interested in buying parts of the business”.

Jane Steer, Zelf Hussain and Edward Williams, the joint administrators, said: “We know this will further add to the uncertainty felt by workers.”

The chain’s stores are likely to be bought by rival bargain retailers such as Poundland, Home Bargains, Primark and B&M, while landlords in some sites may have to divide up the space.

Sky News reported on Wednesday evening that Poundland could take over up to 100 stores.

B&M European Retail, the London-listed discount chain, is also in negotiations to take on between 40 and 50 shops, according to one insider, Sky said.

Read more on Proactive Investors UK

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