Popular homeware brand, Wilko has announced that it has come on a brink of collapse, and this has triggered fears of job losses across UK, especially in West Yorkshire.
The company, known for its wide range of products and affordable prices, has been a staple in the lives of many British consumers for decades. However, the recent economic downturn and intense competition in the market have taken a heavy toll on the company’s financial stability.
The company has a significant presence in West Yorkshire. Of over 400 stores across UK, the store locator search on Wilko’s website reveals that the chain has 10 stores in West Yorkshire.
Asian Standard, tried to contact Wilko for the total number of employees in West Yorkshire, however the chain did not have a specific data on number of employees in West Yorkshire.
“I’m afraid we don’t have these figures, but there are 12K team members nationally,” came the reply from Wilko’s office.
However, if we consider an average amount of employees each store would have, including back-office employees, we can conclude that hundreds of jobs in West Yorkshire might be in danger, if Wilko does collapse.
Wilko CEO Mark Jackson in a statement said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file an NOI.
We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible. We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable wilko and maximise the significant opportunities that we know exist.
“We’re a £1.2bn turnover business with strong presence on UK high streets through our 400 stores, online at wilko.com and through our great value Wilko own brand products, serving local communities with their everyday household and garden needs for over 90 years.
“That said, while we’ll continue to progress these indicative offers, without the surety of a recapitalisation being able to be completed within the necessary time frame and given the cash position, we’ve been left with no choice but to take this action.”
