Home » UK Business News » Wilko bidders given deadline to prepare rescue bids
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Wilko has set a deadline for potential buyers to submit their rescue offers by Wednesday (August 16).
The company, which has been in operation since 1930, entered administration last week.
Currently, Wilko boasts over 400 stores and employs around 12,500 individuals.
READ MORE: Wilko Collapse Puts 12,500 Jobs At Risk
PwC, the appointed administrator for Wilko, has established this deadline to identify genuine bids for the company.
According to the BBC, two retailers have expressed interest in placing an offer.
Additionally, private equity firms Alteri and Gordon Brothers might be considering an investment in the chain.
However, Alteri Investors has refrained from commenting, and Gordon Brothers is yet to respond.
The future of Wilko's stores and the brand name itself remains uncertain.
Wilko's move to administration was a result of its inability to secure £75 million in funding.
Mark Jackson, the company's CEO, mentioned they had been working on a business revival plan for the past six months.
Despite their efforts, Jackson acknowledged entering administration was the only viable option.
For now, Wilko stores remain operational, and employees continue to receive their salaries.
Some stores have already initiated an "administration sale" with reduced prices.
If no offers are presented by the set deadline, the company could face liquidation.
Wilko's current situation is the most significant in the retail sector since McColl's, a convenience store chain, filed for administration last year, putting 16,000 jobs at risk.
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However, supermarket chain Morrisons acquired the company, initially preserving all jobs.
Later, Morrisons shut down several stores, leading to job losses.
In February, Wilko announced a cut of 400 jobs.
PwC said the company faced severe trading challenges during the pandemic and the ongoing cost of living crisis.
Retail analysts believe competitors like B&M, Home Bargains, and The Range offered similar products at more competitive prices.
Additionally, these competitors have shifted their focus from High Streets to retail parks, which many consumers find more convenient.
Susannah Streeter, from Hargreaves Lansdown, pointed out other discounters have diversified their product range and focused on retail park locations.
The combination of inflation and supply chain issues made recovery challenging for Wilko.
Despite the challenges, Jackson revealed there was significant interest in rescuing the struggling business.
However, due to the uncertainty of finalizing a deal within the required timeframe and the company's financial position, administration became the only option.
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