Wilko’s chair, Lisa Wilkinson, has expressed her sadness over the collapse of Wilko which left 12,000 employees redundant. Speaking to MPs on the Business and Trade Committee, she apologised for the insolvency of the business, which she said had let down its customers, team members, suppliers, and advisors. Wilkinson, who is also the granddaughter of the founder, added that last year’s mini budget was among the reasons for the retailer’s failure, as it increased the interest rate on a loan with Australia’s Macquarie that Wilko was securing at the time.
Referring to the reasons for its closure, former chief executive Mark Jackson said that one of the ways in which the company failed was that it continued trading during the pandemic. The company had over £100m in cash reserves at the start of 2021, but this cash began to run down because it continued paying workers and landlords in full. He stated that he would not have kept the shops open, and would have taken advantage of government measures such as furlough schemes and rent protection. Wilkinson, however, said that the decision to remain open was a difficult one, as they were an essential retailer and the company had always remained open throughout its history.
Canadian billionaire Doug Putman, who owns HMV, revealed that he had tried to save most of Wilko’s 400 shops but was unable to do so due to the greed of some firms, including landlords, that were “super inflexible” and made a deal “literally impossible.” If they had given him access to the IT system for a few months, the businessman said that it could have helped save the failing business. He had initially hoped to take over 300 shops but later reduced the number to 100 before walking away. Eventually, Poundland and B&M took over leases of 71 and 50 shops, respectively, while CDS Superstores bought Wilko’s name and website and is opening five Wilko stores before Christmas.
Wilko was founded in 1930 by James Kemsey Wilkinson. By the 1990s, it had become one of the UK’s fastest-growing retailers. However, as customers sought cheaper goods amid higher inflation, the chain began to struggle against cheaper rivals. If you were affected by the collapse of Wilko, you can share your experiences with the BBC by emailing haveyoursay@bbc.co.uk
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