Wilko and advisers from PwC are seeking new funding as the retail group is facing severe difficulties in stocking its stores without credit insurance. The retailer has also been in talks about mounting a CVA to exit some of its stores and reduce rents for those it wants to keep.
Wilko CEO Mark Jackson said in a statement: “As directors, we continue to work through all the options available to the business, and in addition to the work we’re doing to streamline costs and transform the way we operate, we’re now also actively exploring opportunities to recapitalise the business and provide a stable platform to activate the next phase of recover, with a plan to maximise the significant opportunities that exist to re-establish a profitable Wilko.”
The rumour mill is comparing Wilko to the Woolworths of 2023, only facing much tougher competition in many of its core categories as the likes of B&M, Poundland and Poundstretcher in addition to a plethora of online sellers. There has been some suggestion that the best outcome would be a takeover from the likes of Kingfisher’s B&Q but in the current market, there appears to be very little appetite for a proposition like this.
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