Four bargain retailers 'interested in making bid for Wilko' ahead of deadline

15 August 2023 , 08:00

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Wilko is now in administration (Image: May James/SOPA Images/REX/Shutterstock)

At least four discount retailers are reported to have expressed an interest in making an offer for Wilko ahead of a Wednesday deadline to save the high street chain.

B&M Bargains, The Range, Poundland and Home Bargains have been linked to talks to snap up Wilko, which collapsed into administration last week. However, sources told The Sun no deal was guaranteed, and it still could mean that hundreds of shops could shut.

It has been reported that some offers could see 300 shops saved, but the majority of offers said to be in discussion are only for between 40 and 50 stores. Administrators at PricewaterhouseCoopers (PWC) have given potential buyers until tomorrow to make indicative offers, before creating a shortlist for second-round bids by Friday.

The Range, B&M and Poundland declined to comment to The Sun, while Home Bargains did not respond to requests for comment. The collapse of Wilko has put more than 400 stores and roughly 12,500 jobs on the line.

CEO Mark Jackson said the company had “no choice but to take the difficult decision to enter into administration“. He said: ”Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business. We left no stone unturned when it came to preserving this incredible business.”

Wilko makes huge change to over 400 UK stores - and it's good for shoppers

Mr Jackson said Wilko had received "indicative offers" but he added: "Without the surety of being able to complete the deal within the necessary time frame and given the cash position, we've been left with no choice but to take this unfortunate action."

Just days previously, specialist investors Gordon Brothers, Alteri Investors and Opcapita were reported to have been considering offers for the company - but hours later, Sky News said a deal had been looking unlikely. Wilko had filed a notice of intention to appoint administrators earlier this month. At the time, Mr Jackson said the business had received offers of help - but none were “able to provide sufficient liquidity” it needed.

It had been reported last month that Wilko was exploring a sale of the business, as well as considering a company voluntary arrangement (CVA) to slash rents at stores. Wilko has already borrowed £40million from Hilco UK, specialist retail investor and lender which owns Homebase.

Levi Winchester