Budget retailer Wilko set to call in administrators, risking 12,000 jobs
The Guardian says Budget retailer Wilko has warned it plans to appoint administrators in a move that could put 12,000 jobs at risk.
The household and garden products retailer, which has about 400 stores, said in a notice of intention filed at the high court on Thursday that it had appointed advisory firm PricewaterhouseCoopers to try to find a buyer in recent months in a bid to secure the additional cash to keep trading.
The cut-price retailer has struggled amid the tough economic climate and last year borrowed £40m from restructuring specialist Hilco. It also cut jobs and rejigged its leadership team as it faced a cash squeeze after falling to a loss, and needed to find new funds by the end of this month.
Sales had fallen as the retailer faced gaps on shelves after struggling to pay suppliers after at least one credit insurer withdrew cover for the retailer, prompting some suppliers to pause deliveries.