Wilko is facing anger from shoppers after its helplines shut down just as the business called in administrators, leaving customers scrambling to get information on refunds and deliveries.
The budget retailer, which paused online deliveries earlier this the week, saw its social media feeds filled with requests for information on items that had been paid for – from furniture to Lego – but had not arrived.
Several shoppers made clear they had tried to reach customer services via the retailer’s phone line and online chat service with no response.
“Mine and my partner’s furniture has gone missing! No one is answering us and it was meant to arrive 6 days ago,” one customer tweeted.
Another claimed they had paid £510 for a furniture order that had been cancelled without a refund appearing. “Tried calling customer service and guess what they don’t have one any more so nobody will answer,” they tweeted.
Wilko’s Facebook page featured similar messages. “It’d be great if my order would actually arrive and if I could get a response from the customer service team,” one person wrote.
It is understood that administrators from PricewaterhouseCoopers, who were appointedon Thursday after talks to secure rescue funding failed, aim to restart the customer helpline and chat system as soon as possible.
The retailer, which employs almost 12,500 people across 400 stores, is continuing to trade while the administrators try to find a buyer for all or part of the business.
Industry insiders were sceptical about a rescue deal on Friday, as the business owes the restructuring expert Hilco £40m, making the costs of organising a rescue relatively high when set against the risks of trying to revive a troubled brand.
Interested parties have included the Homebase owner, Hilco, the Bensons for Beds owner, Alteri, and the Laura Ashley owner, Gordon Brothers, as well as the finance group OpCapita. More than one retail group is also reported to have cast their eye over the chain.
Mike Ashley’s Frasers Group, which has bought up a number of struggling retail brands, is not thought to be interested.
There could be potential for a group such as Poundland or the former Dragons’ Den investor Theo Paphitis’s group, which owns Ryman and Robert Dyas, to link Wilko with their operations, which sell similar products in the same kind of location. However, they are thought unlikely to want to pay more than administrators could secure by selling off stock and small parcels of stores.
One experienced dealmaker said: “It starts with a W and looks like another Woolworths,” referring to the 2008 collapse of the budget chain that left gaps on hundreds of high streets.
Several former Wilko suppliers say they have already halted deliveries to the retailer, although administrators are understood to be attempting to negotiate the arrival of stock to keep stores trading, with gaps appearing on some shelves.
With at least some stores expected to close within weeks, the GMB union has expressed concerns about the prospects for staff.
Workers, who are paid weekly, received their pay on Friday and the administrators have guaranteed that they will continue to be paid.
However, if workers are made redundant, employment lawyers said they would have to apply to the Redundancy Payment Service for any notice pay or holiday entitlement. Pay arrears are capped at £643 a week and it can take weeks or even months for payment to be finalised.
Wilko has more than 1,900 members of its defined benefit pension scheme, according to the group’s latest published accounts.
The Pension Protection Fund is assessing whether the scheme has sufficient funds to support itself or needs to enter its “lifeboat” scheme. The latest published accounts for Wilko show the pension scheme had a £16m deficit before tax and it is understood that the fund has a £20m charge over Wilko property assets, putting it in a strong position.
The independent pensions expert John Ralfe said that recent increases in interest rates meant Wilko’s pension hole had probably been closed and it would not need to stay in the pensions lifeboat. The fund could swiftly transfer to an insurance company, which would cover payments.
“There may be a cut to pension promises, even after including the £20m security Wilko has given the scheme, but it should be a small cut,” he said.
The 10,000-plus people in Wilko’s more modern defined contribution pension scheme will not be affected by the administration, it is understood.
The Pensions Regulator, meanwhile, has powers to pursue business owners who have taken money out of a business shortly before it has collapsed. Wilko’s shareholders, led by the Wilkinson family, paid themselves £3m in dividends in the year to February 2022 so there is a possibility they could be pursued for funds if the scheme is in trouble.
