A rescue deal to preserve the majority of Wilko’s stores is facing uncertainty.
Key suppliers insist on upfront repayment of outstanding debts to ensure the continuous supply of products to the chain.
Doug Putman, known for his HMV turnaround and ownership of Toys R Us in Canada, has been negotiating to save around 300 of Wilko’s 400 stores.
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If the move is successful, it will safeguard more than 12,000 jobs.
However, negotiations over the weekend faced challenges, delaying the expected deal announcement.
Major suppliers, including Unilever and Procter & Gamble, have demanded immediate debt repayment to continue serving Wilko’s stores.
The talks also revealed concerns some suppliers, who cancelled shipments when Wilko entered administration last month, might be unable to resume product deliveries for up to six weeks.
While these obstacles have slowed the rescue discussions, sources indicate that a potential deal is still possible later this week.
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PwC, the appointed administrator, continues discussions with other potential buyers regarding acquiring some of Wilko’s stores.
The buyers are B&M Bargains, Poundland, Home Bargains, and the Range.
Doug Putman’s proposal aims to save most jobs and stores within the Wilko chain.
Staff have already left
However, reductions are already underway at the company’s headquarters and warehouses.
On Monday, 269 employees at the Worksop support center had their last day with the company.
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PwC, as the administrator, is to safeguard the interests of creditors, including Hilco, owed £40 million.
Wilko, founded in 1930, emerged by filling vacant Woolworths store spaces following the latter’s collapse in 2008.
The Wilkinson family, who retained control until administrators were appointed on August 10, awarded themselves £3 million in dividends in the year ending February 2022.
It was despite the company incurring losses during that period.
Unilever has declined to comment, and P&G has been contacted for a statement.
