Wilko bid collapses with fresh holes set to appear in the high street
- A deal that was on the table from the billionaire owner of HMV, Doug Putman has fallen through.
- It leaves the future of more than 10,000 workers highly unclear.
- Administrators are expected to announce the details of further job losses and store closures this week.
Susannah Streeter, head of money and markets, Hargreaves Lansdown: “Wilko faces disappearing from the high street after a rescue bid to save the name and a vast chunk of stores appears to have collapsed. This is the news thousands of staff had been fearing, and with hopes of a white knight rescue receding into the distance, they are staring at the prospect of redundancy. B&M has already swooped into the bargain bin and picked up 51 stores from the administrators PwC and it’s likely that other value chains may still be hovering, ready to hoover up a handful of other outlets in cut-price deals. There is a chance that the brand itself may survive but as a range on another retailer’s shelves, and further deals are rumoured to potentially be announced this week. But it looks like the famous red and white shopfronts will be dismantled and Wilko will join Woolworths in the high street history books.
The ditched deal could not come at a worse time for the high street, with its fortunes looking increasingly crushed amid the cost-of-living crisis and competition from online. Wilko’s demise comes amid heightened warnings about the long-term decline of town and city centres, with shoplifting on the increase and boarded up outlets now commonplace. Dame Sharon White, the chair of John Lewis is the latest to warn about the increase in anti-social behaviour and has called for a Royal Commission to look at ways of solving the problems.
It’s clear there needs to be a big rethink about how to revitalise our high streets, which were once the beating hearts of communities. It’s set to be increasingly tough going as lockdown savings are further whittled away and the impact of higher rates on borrowing costs are felt more widely. It’s an increasingly competitive on the value retail landscape, as the big grocers compete with discount chains for business. In this climate a good location, the right product mix and a razor sharp focus”.
