More than 10,000 jobs that remain at Wilko are set to be lost in the next few weeks, after a rescue deal by billionaire HMV owner Doug Putman collapsed.
According to the GMB union all 400 remaining Wilko stores will close by early next month, while all distribution centres will close on Friday (15 September).
It had been reported that Putman, a Canadian billionaire, had hoped to keep up to 300 Wilko stores open, but rising costs – due to the need to overhaul its supply chain an the cost of running its legacy operations – caused him to pull out of the deal.
Administrator PwC is yet to comment on next steps, but the GMB union told members today that all remaining jobs would be lost, although some staff would be asked to stay on for a few days to assist after stores and warehouses have closed.
The union said: “Although separate bids may be made for leases of groups of sites, these deals will not secure jobs, although the option to take up new employment with the bidders for these sites is something we are now pushing for.
“This is not the news our members or the GMB had been hoping for or working towards. We share the sorrow and anger of every Wilko team member today.”
In a statement to The Sun Putman said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.
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“A stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted.”
Around 1,600 redundancies at the troubled retailer, which went into administration in August, have already been announced, including head office and distribution centre roles. Some lost their jobs last week and further stores are expected to close this week.
The GMB union said another tranche of store closures, involving 124 shops, would be announced tomorrow (12 September).
The union suggested that some staff had not had a statutory redundancy consultation. It said it was “working on failure to consult claims”.
Last week discount retailer B&M agreed to buy up to 51 Wilko stores, but it is not yet known whether the company will continue to employ the people at these premises.
Poundland, Home Bargains and The Range are also understood to be interested in buying some stores to expand their estates.
Administrator PwC last week said it has a dedicated team to support affected employees, including assisting in the statutory redundancy claims process. An employee helpline remains in place to address queries.
PwC and Job Centre Plus will be hosting employer workshops in Worksop and Newport, where Wilko’s now-defunct distribution centres were located. Other large employers are set to attend, with the aim of helping affected employees find new jobs.
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