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Collective redundancyLatest NewsRetailJob creation and lossesInsolvency

First Wilko redundancies confirmed after deal falls through

by Ashleigh Webber 31 Aug 2023
by Ashleigh Webber 31 Aug 2023 Zeynep Demir Aslim / Shutterstock.com
Zeynep Demir Aslim / Shutterstock.com

The first Wilko redundancies have been confirmed after administrators were unable to secure a buyer for the collapsed retail chain.

A bid from private equity firm M2 Capital fell through this week, but it is understood that talks with HMV owner Doug Putman about rescuing part of the company are ongoing.

Administrators at PwC confirmed that the first job losses will take place within the next week, including employees at Wilko’s support centre in Worksop, where 269 people are based, and its distribution centres in Worksop and Newport.

No viable offers have been received for Kin Limited, a subsidiary of Wilko, resulting in a further 14 redundancies.

Wilko redundancies

Jobs at risk as Wilko goes into administration

Redundancies likely as Wilko rescue talks collapse

High street giant Wilko likely to enter administration

The support centre and Kin staff will be made redundant on Monday 4 September.

The number of job losses at the distribution centres has not yet been confirmed.

Jane Steer, joint administrator, said: “It’s with great sadness that we announce these redundancies. We’re incredibly grateful to these team members for the support and dedication they’ve shown to the company, particularly over the last few very difficult weeks.

“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work. Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect. We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms. Advice and assistance will also be available from Job Centre Plus and other agencies.”

The GMB union said the majority of people working in Wilko’s commercial trading, IT, finance, legal and HR teams would be made redundant on Monday.

It said it had been talking to Bassetlaw District Council, the Welsh Assembly, and “other organisations” in a bid to save jobs by finding tenants or buyers for the distribution centres.

There is a dedicated helpline for Wilko employees who have questions about the process and support in place.

PwC said all of Wilko’s stores remain open while “discussions continue with those interested in buying parts of the business”.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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