The troubled budget retailer Wilko has called in administrators, putting more than 12,000 jobs at risk after it failed to agree a rescue deal.
The family-owned household and garden products retailer, which has about 400 stores, is expected to have to close dozens of outlets, leaving big gaps on high streets after weeks of talks with potentially interested parties.
Mark Jackson, the chief executive, said: “We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Administrators from PricewaterhouseCoopers are expected to continue to seek a buyer for at least part of the business after their appointment.
Wilko is the largest retailer to collapse into administration since the convenience-store chain McColl’s, which employed about 16,000 people, just over a year ago. McColl’s was rescued by the supermarket chain Morrisons.
Wilko, which was founded in 1930 when JK Wilkinson opened his first store in Leicester, stepped into many high street gaps left by the collapse of Woolworths in late 2008 but has struggled in the tough economic climate.
Last year the budget retailer borrowed £40m from the restructuring specialist Hilco, cut jobs, rejigged its leadership team and sold off a distribution centre as it faced a cash squeeze after falling to a loss.
Suppliers to the retailer paused or reduced supplies, leaving it with gaps on shelves, after the company struggled to pay its bills and at least one credit insurer withdrew trade cover.
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The owners of Wilko, led by the Wilkinson family, took £3m in dividends in the 12 months to the end of February 2022.
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