ANOTHER 9100 people who work for failed retailer Wilko will be made redundant, administrators confirmed on Monday after talks to save hundreds of shops fell apart.
Administrators at PwC said that the rest of Wilko’s shops would close by early October, with staff there losing their jobs. The company’s two warehouses will also close and most of the activities at its support centre will cease, PwC said.
It said that “extensive efforts” had failed to produce a deal which would save any “significant part” of the Wilko operations.
Staff at 124 stores were on Monday informed that those sites will close on or before Thursday September 21. The dates when the remaining 222 shops will close will be announced later, PwC said.
Most of the 886 remaining warehouse staff will be made redundant on Friday, while there will be further redundancies among the remaining 210 support centre employees until the early part of next month.
Zelf Hussain, joint administrator at PwC, said: “Despite the significant and intensive efforts of both ourselves and Putman Investments – the remaining party interested in buying a significant part of the business as a going concern – a transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable.
“The dedication shown by all team members during this period has been hugely humbling and we are grateful for the patience and understanding they have shown.
“As with those who have already been given notice of redundancy, we will guide and support those team members impacted over the coming weeks through the redundancy claims process.
“We also continue to collaborate closely with relevant agencies and engage with any potential employers to help facilitate a quick return into new employment for those impacted.
“We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days.”
Nadine Houghton, GMB Union national officer, said: “Wilko was far more than a brand, a retailer or the products it sold, it was the thousands of loyal team members now facing an uncertain future.”
She added: “This isn’t a tragedy without cause. Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners.
“Money was siphoned out of the business for dividends, warnings about what needed to be done to save the business were not heeded and advice around what the business to do to thrive was not listened to.
“No worker caused the downfall of Wilko. But they will be the ones who will suffer – all as the owners get off scot-free.
“GMB will not stop campaigning for the owners of this debacle to be held to account.”
