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Wilko workers face pension cuts as deficit deepens

Wilko sign

Wilko employees enrolled in the company's pension scheme are facing a retirement savings cut as the scheme enters the Pension Protection Fund. 

The scheme's deficit, which has around 2,000 members, has surged to £76 million on a buyout basis.

It exceeds the previous estimate of £50 million, as reported by administrator PwC.

Read More: The Range Nears £5m Acquisition Of Wilko Brand

£56 million of the deficit will be categorized as unsecured debt.

The scheme would recover £20 million through security held over a distribution centre and other freehold properties. 

But distributions to unsecured creditors are expected to remain minimal, according to The Sunday Times.

Under the Pension Protection Fund, members reaching retirement age will receive their full pension.

However, younger members will experience a 10 percent reduction in their benefits.

Wilko's recent collapse threatened the jobs of most of its 12,000 employees.

It raised concerns about the Wilkinson family's management

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Over the past two decades, the family extracted over £100 million in dividends from Wilko.

It includes £750,000 as recently as February last year.

It was revealed last week that Wilko's 400 stores are set to close.

HMV owner Doug Putman's proposal to acquire the bulk of its shops fell through. 

B&M has secured a deal to purchase 52 stores, while Poundland has bought 71 shops

Additionally, The Range has acquired Wilko's brand, website, and intellectual property for £5 million.

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