Redundancies scheduled to begin this week at Wilko have been ‘suspended’ while administrators consider several rescue bids for the high street retailer.
The GMB union revealed last week that most Wilko employees are expected to lose their jobs, some as soon as this week, after a major bidder dropped out. But at least two new bidders have emerged over the bank holiday weekend.
The chain collapsed into administration earlier this month putting 12,500 jobs at risk.
Some shops are still expected to be saved by smaller bidders, but the most likely scenario still involves most of Wilko’s 400 shops closing.
The GMB union, which represents around a third of workers, met with administrators at PwC on Tuesday after calling for an urgent meeting with the business secretary Kemi Badenoch.
Wilko redundancies suspended
Jobs at risk as Wilko goes into administration
GMB national secretary Andy Prendergast said that Wilko was “not out of the woods yet by any means”.
He added that while the pause to any potential job losses was positive, it is still “a time of incredible stress and worry” for Wilko employees.
The union has asked Badenoch for reassurance that “all steps” will be taken to protect jobs.
A government spokesperson said: “While this is a commercial decision for the company, we understand that this will be a concerning time for workers at Wilko.”
On Sunday, a fresh rescue bid for Wilko emerged with private equity firm M2 Capital confirming it had made a £90m bid for the business. It pledged to retain all employees’ jobs for two years. Canadian businessman Doug Putman, who owns the HMV record chain, is also interested in saving some of Wilko’s business.
Competitors have also been reported to have submitted offers for Wilko including Poundland, which could take on 100 stores, and B&M, which is said to be considering between 40 and 50 stores.
PwC has said it is working hard to secure a sale of the business. “We are actively engaging with all interested parties and assessing the deliverability of all bids made,” said a spokesman, adding its intention was to achieve “the best outcome for everyone involved” including creditors and staff.
“It would be inappropriate to comment on individual bidders or interested parties at this stage in the process,” it added.
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