Wilko appoints PwC as joint administrators

Jane Steer, Zelf Hussain and Edward Williams of PwC have been appointed as joint administrators of Wilkinson Hardware Stores Lts, Wilko Ltd and Wilko.com Ltd.

The news comes after Wilko CEO Mark Jackson announced yesterday (10 August, 2023) that Wilko was entering administration as it failed to complete the takeover deal “within the necessary timeframe”.

The group, with headquarters in Worksop, Nottinghamshire, has 400 stores across the UK and approximately 12,500 employees.

According to PwC, the group has been hit by “incredibly challenging trading conditions, both throughout the pandemic and more recently as it has felt the impact of the cost of living crisis, resulting in increasing cash flow pressure and a deterioration in trading”.

It added that initially Wilko will continue to trade all stores without any immediate redundancies as discussions with interested parties continue.

PwC will reportedly seek a buyer for at least a part of the business.

However, if buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow.

Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.

“Many high street retailers are facing a number of well-documented challenges and wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates. Wilko has been a staple of many British high streets for decades.”

He added: “We know that the appointment of administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.

“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”