Wilko plans to close over 50 stores, resulting in the loss of more than 1,300 jobs.
However, administrators are negotiating a potential deal to salvage most of the struggling retailer’s stores and workforce.
PricewaterhouseCoopers (PwC) has officially confirmed the closure of 52 Wilko stores, leading to the termination of 1,016 positions.
Read More: Wilko Rival B&M Buys 51 Stores As HMV Rescue Collapses
Impacted employees will receive notifications by 10 am today (Wednesday, September 6).
The retailer plans to shut down 24 stores on Friday, September 12.
The remaining closures will occur two days later.
Employees would continue working for two days following their store’s closure as part of the process.
PwC plans to release the list of store locations slated for closure on Wednesday.
Wilko will also eliminate 299 jobs at its two large warehouses in Worksop, Nottinghamshire, and Newport, Wales.
Read More: Wilko Store Rescue Faces Uncertainty Over Supplier Debt
The company’s support centre will see 17 more redundancies, primarily affecting digital operations staff.
Edward Williams, joint administrator at PwC, said: “In the absence of viable offers for the whole business, very sadly store closures and redundancies of team members from those stores are now necessary.
“We know this has been a deeply unsettling time for everyone concerned and would like to express our gratitude to all Wilko team members for the dedication and support they have continued to give the business in the most trying of circumstances.”
The GMB union blamed the dire state of the 408-store Wilko chain on “years of mismanagement.”
Read More: Wilko Faces Staff Layoffs After M2 Capital’s Bid Fails
More redundancies after B&M buyout
The union said a £13 million deal struck by discount retailer B&M to rescue 51 branches would result in more redundancies.
GMB said: “Any such bid would appear to be for store premises only.
“This would mean that while new brands may open on site, workers would not transfer to these.
Instead, the administrators would make them redundant before any store closure.
“We are making inquiries about the possibility of current staff being given preferential treatment in applying for any jobs that may appear.”
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PwC is in talks with Doug Putman.
He is known for turning around HMV in the UK and owning Toys R Us in Canada.
Putman aims to save up to 300 of Wilko’s stores, providing a lifeline to most of its 12,000-plus employees.
GMB said: “PwC confirmed that they are continuing to work with one bidder who has made an offer for a significant part of the business.
“While there remains a possibility that this fails to deliver, we are working hard and doing everything we can to help it over the line.”
