What Happened to Wilko? Is Wilko Shutting Down?

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:

And the list of Wilko stores set to close on Thursday, September 14:

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

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