Wilko staff in Wiltshire tight-lipped over future of stores

Shops in Swindon, Trowbridge, Chippenham and Devizes could be at risk of closing with the homeware and household goods chain reported to be on the verge of collapse into administration.

The high street retailer is seeking court protection from its creditors while trying to put together a rescue deal.

The big-name brand has 400 shops across the UK.

The Wilko's flagship store in the Castle Place shopping centre mall in Trowbridge. Photo: Trevor Porter 70035-1a (Image: Trevor Porter)

But staff remained tight-lipped on the day of the announcement (August 3) after being instructed by their head office managers not to comment to local media outlets.

In Trowbridge, Wilko trades from the flagship store at the Castle Place shopping centre which has already seen shop closures.

A manager at the Trowbridge store said: “We’re not allowed to comment. You’ll have to ring the head office.”

The store is currently offering a sale with up to 70 per cent off some items, and there are empty shelves evident throughout.

Some of the empty shelves at Wilko's store in the Castle Place shopping centre in Trowbridge. Photo Trevor Porter 70035-2 (Image: Trevor Porter)

At the store in The Parade, Swindon, a member of staff said they could not comment.

Swindon's other store is at Greenbridge Retail Park, while Wilko trades in the High Street in both Chippenham and Devizes.

The company’s chief executive officer Mark Jackson, confirmed that Wilko has filed a notice of intent to appoint administrators, putting around 12,000 jobs at risk.

Mr Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.

“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.

“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.

“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”

The £1.2 billion turnover company has been in trouble for several months following a downturn in sales due to the current economic conditions.

It has been exploring company voluntary arrangement options and potential funding from investors.

One investor, Hilco, has already put £45m into Wilko this year to keep the Nottinghamshire-based business going.

The company is owned by the Wilkinson family, which has filed a notice of intention to appoint administrators.

This gives the company a 10-day window to secure a deal to keep it in business while protecting it from action by its creditors.

The company is being advised by PwC, while property agents CBRE has been brought in to negotiate rents with landlords.

Wilko has faced significant challenges in recent months, including with obtaining stock due to credit limits with suppliers.

This has led the company to focus on selling goods that would generate the highest short-term revenue.

Last month it was revealed the Wilkinson family was considering selling the business as its financial plight worsened.

Wilko opened its first store in Leicester in 1930 but is now in danger of falling out of the family’s hands.