What Happened to Wilko? Is Wilko Shutting Down?
by Tamilchandran | Updated Sep 12, 2023
Wilko Stores
Wilko Stores, formerly known as Wilkinson Cash Stores and Wilkinson Hardware Stores, has a rich history in the British retail scene. Founded by James Kemsey Wilkinson in Leicester in 1930, the company started with its first store on Charnwood Street. It quickly expanded, opening its second store in Wigston Magna near Leicester in 1932. By 1939, nine branches were established, and over the years, the chain continued to grow.
Throughout its journey, the company remained in the ownership of the Wilkinson family until various changes in leadership and ownership occurred. Notably, Tony Wilkinson succeeded his father as chairman in 1972, followed by Lisa Wilkinson and Karin Swann taking over key roles.
The business evolved, rebranding as Wilko in 2012 and expanding into new markets, such as Scotland in 2009 and even venturing into international collaborations, like selling products in Dubai through Ace Hardware. Despite some challenges, including job cuts and store closures, Wilko remains a significant presence in the British high-street retail landscape, offering a wide range of homewares and household goods.
What Happened to Wilko?
The fate of Wilko, the long-standing UK retailer, has taken a somber turn as it entered administration in August, marking a significant chapter in its more than 90-year history. Wilko, which originated as a single hardware store in Leicester, had been a resilient presence on the high street for many years, even as other retailers like Woolworths faced financial challenges. However, in recent times, the company's profitability had been on the decline due to various factors.
One contributing factor to Wilko's struggles was the changing landscape of the UK high street, where it faced increased competition from rivals like B&M and Home Bargains. Retail parks, which often house these competitors, have seen a surge in footfall in recent years, drawing shoppers away from traditional high streets where many of Wilko's stores were located.
Additionally, economic challenges, including the impact of the COVID-19 pandemic, rising energy costs, and mortgage rates, put pressure on consumer budgets, affecting Wilko's performance.
Moreover, the size and location of Wilko's stores also posed challenges. Many of its stores were deemed too large for high street locations, incurring higher rents and rates without the convenience of retail park amenities.
The company's broad product range was seen as stretching into markets it may not have been ideally suited for, further complicating its position. These factors collectively contributed to cash flow issues and a deterioration in trading, ultimately leading to the breakdown of efforts to save the retailer and leaving its 12,500 staff facing job losses.
Is Wilko Shutting Down?
Yes, Wilko is facing the prospect of shutting down as the last-bid rescue deal for the high street chain has officially collapsed. Billionaire owner of HMV, Doug Putman, had attempted to save a substantial number of stores and jobs, but the bid failed due to rising costs.
Wilko is shutting down its remaining 400 stores, leading to the loss of 9,100 staff. The announcement came from administrators PwC after efforts to rescue the company proved unsuccessful. Employees at 124 stores were informed that these locations would close by or before Thursday, September 21, while the rest of the shops are set to close by early October.
Additionally, the company's two warehouses will also cease operations, and most activities at its support center will halt. Despite talks with various interested companies, including HMV owner Doug Putman, who considered taking over approximately 200 shops, no agreement could be reached due to substantial "infrastructure" costs.
List of Wilko Stores Closing
Here is the list of Wilko stores that are scheduled to close on Tuesday, September 12:
Location
County/Region
Acton, London
London
Aldershot, Hampshire
Hampshire
Barking, London
London
Bishop Auckland, County Durham
County Durham
Bletchley, Milton Keynes
Milton Keynes
Brownhills, Walsall
Walsall
Camberley, Surrey
Surrey
Cardiff Bay Retail Park
Cardiff
Falmouth, Cornwall
Cornwall
Harpurhey, Manchester
Manchester
Irvine, North Ayrshire
North Ayrshire
Liverpool Edge Lane
Liverpool
Llandudno, Wales
Wales
Lowestoft, Suffolk
Suffolk
Morley, Leeds
Leeds
Nelson, Lancashire
Lancashire
Port Talbot, Wales
Wales
Putney, London
London
Stafford, Staffordshire
Staffordshire
Tunbridge Wells, Kent
Kent
Wakefield, 121 Kirkgate
Wakefield
Weston-super-Mare, Somerset
Somerset
Westwood Cross Retail Park, Broadstairs, Kent
Kent
Winsford, Cheshire
Cheshire
And the list of Wilko stores set to close on Thursday, September 14:
Location
County/Region
Ashford, Kent
Kent
Avonmeads, Bristol
Bristol
Banbury, Oxfordshire
Oxfordshire
Barrow-in-Furness, Cumbria
Cumbria
Basildon, Essex
Essex
Belle Vale, Liverpool
Liverpool
Burnley, Lancashire
Lancashire
Clydebank, Glasgow
Glasgow
Cortonwood, Barnsley
Barnsley
Dagenham, Essex
Essex
Dewsbury, West Yorkshire
West Yorkshire
Eccles, Greater Manchester
Greater Manchester
Folkestone, Kent
Kent
Great Yarmouth, Norfolk
Norfolk
Hammersmith, London
London
Huddersfield, West Yorkshire
West Yorkshire
Morriston, Swansea
Swansea
New Malden, South-west London
London
North Shields, Tyne and Wear
Tyne and Wear
Queen Street, Cardiff
Cardiff
Rhyl, Wales
Wales
Southampton West Quay
Southampton
St Austell, Cornwall
Cornwall
Stockport, Greater Manchester
Greater Manchester
Truro, Cornwall
Cornwall
Uttoxeter, Staffordshire
Staffordshire
Walsall Woking, Surrey
Surrey
Wilko Administration
In January 2023, signs of financial strain began to appear for Wilko as they borrowed £40 million from Hilco Capital and announced plans to cut up to 400 jobs in February. The situation escalated on August 3, 2023, when Wilko made the decision to appoint administrators while seeking a buyer due to challenging trading conditions. The company officially entered administration on August 10, with efforts to keep the stores open temporarily.
CEO Mark Jackson expressed the intent to collaborate with administrators PwC to safeguard as many jobs as possible. Despite ongoing negotiations, a bid of £90 million from M2 Capital fell through, but B&M purchased 51 Wilko stores for £13 million in September 2023.
Unfortunately, this acquisition was accompanied by news of 1,332 job losses and the closure of 52 stores, and the rescue deal led by Doug Putman ultimately collapsed on September 11, marking a difficult chapter in Wilko's history
What Happened to Wilko - FAQs
Wilko entered administration due to financial difficulties and sought a buyer.
Wilko went into administration on August 10, 2023.
Yes, Wilko's management worked with administrators to preserve as many jobs as possible.
Yes, B&M purchased 51 Wilko stores in September 2023.
The £90 million bid from M2 Capital fell through on August 31, 2023.