(Sharecast News) – UK retailer Wilko on Thursday said it planned to call in administrators as it neared collapse, putting more than 12,000 jobs at risk, amid anaemic consumer demand and high costs.
The chain, with 400 stores selling everything from power tools to garden sheds, has filed a notice of intention (NOI) to appoint administrators at the High Court on Thursday.
Advisory firm PwC is likely to take over the running of the business. It has been working with Wilko in an effort to find a buyer and secure much-needed cash to keep it alive.
Last year it borrowed £40m from restructuring specialist Hilco, and set about restructuring via job cuts and making changes to it leadership team.
Chief executive Mark Jackson on Thursday confirmed the business was finding difficulty getting a buyer to provide the “necessary liquidity”.
“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. Unfortunately, with this in mind, today we’re having to take the difficult decision to file a NOI,” he said.
“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.”
Reporting by Frank Prenesti for Sharecast.com