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Collective redundancyLatest NewsRetailRedundancy

Redundancies likely as Wilko rescue talks collapse

by Ashleigh Webber 24 Aug 2023
by Ashleigh Webber 24 Aug 2023 Zeynep Demir Aslim / Shutterstock.com
Zeynep Demir Aslim / Shutterstock.com

The majority of Wilko stores are set to close, putting thousands of jobs at risk of redundancy, after talks to rescue the retailer from administration collapsed.

According to the GMB Union, which met with administrator PwC yesterday (23 August) most Wilko stores would close within weeks, resulting in mass redundancies affecting staff in call centres and stores. However, some stores may be bought, either individually or as part of larger packages.

Wilko redundancies

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Redundancy: What to do when making staff redundant

Around 12,500 people are employed by Wilko, which went into administration earlier in August.

Joint administrators Jane Steer, Zelf Hussain and Edward Williams said: “Since our appointment as administrators of Wilko we have held extensive discussions with parties who expressed an interest in buying all or part of the business. While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole group.

“We know this will further add to the uncertainty felt by workers. We will be supporting staff through this deeply unsettling time, working closely with the government, JobCentre Plus, unions and large employers to maximise possibilities for a rapid return to work for employees in the event of redundancies.

“In the immediate term, all stores remain open, continue to trade and staff continue to be paid. Contrary to speculation, there are currently no plans to close any stores next week.”

Andy Prendergast, GMB national secretary, said: “GMB Union will continue to support our members through this process and will fight to ensure they are consulted as per the law and receive every penny they are entitled to.”

The news came as the CBI warned UK retailers are planning to cut jobs this year as consumers cut back on spending. Retail sales in August fell at their quickest pace in over two years.

Martin Sartorius, a principal economist at the CBI, said: “Against a backdrop of rising interest rates and weak demand, retailers foresee cuts to investment over the next year, while employment is expected to fall again next month.”

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Wilko
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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