The future of Wilko remains in limbo as it emerged that potential white knight M2 Capital’s bid to rescue the business failed today (Thursday 31 August).
Administrator PwC said that “no viable offer structure” was put forward to buy the group in its entirety, and it is thought that M2 Capital’s bid failed to meet basic checks.
It is understood that there was a lack of proof of funds from the private equity firm.
Although PwC has confirmed that redundancies will now commence in its support teams, with 269 roles to be axed on Monday and further job cuts set to be announced in its distribution centres early next week, the administrator is still considering several bids for parts of the business, which collapsed into administration earlier this month.
Retail Gazette rounds up the firms still in the running to snap up parts of the Wilko business.
HMV owner Doug Putman
HMV owner Doug Putman has also made a last-minute swoop to stop the much-loved retailer from disappearing from the British high street.
The Canadian tycoon, who also owns chains including Toys R’Us Canada and Sunrise Records, is understood to have submitted an improved offer on Friday that would see him take on up to 350 Wilko stores, up from his original bid of retaining 200 outlets.
According to Sky News, the offer would mean that between 8,000 and 9,000 jobs of the 12,500 workforce could be saved.
However, it is understood that Putman is not interested in taking on the retailer’s head office or distribution centres. Sky News estimates the total number of jobs at risk is 1,300.
This would not be the first time the businessman has snapped up a retailer in administration, having acquired HMV in 2019 and returning it to profit last year.
The Range
Wilko rival The Range is understood to be looking to snap up the discount retailer’s brand and online operations if Putman’s bid fails.
Since 2015, The Range is among the throng of value rivals that have overtaken Wilko’s non-food market share, according to GlobalData.
The firm, founded in 1989 by Plymouth-based tycoon Chris Dawson, has grown to become one of the most successful retailers on the high street.
The Range now operates more than 200 stores, which unlike Wilko shops are based in out-of-town retail parks, and is in expansion mode.
The retailer is currently developing what it claims is the largest distribution centre built in the UK in the past five years, which will help fuel its ambitious growth strategy.
Former market trader Dawson, who drives a Rolls Royce with the number plate DE11 BOY, aims to open a further 100 The Range stores and has set its sights on snapping up stores left empty by John Lewis and Debenhams.
OnBuy
Online marketplace OnBuy has made an eleventh hour bid to buy the Wilko brand, Retail Gazette revealed on Thursday.
It is thought that OnBuy wants to continue trading through Wilko.com. The Bournemouth-based firm, set up by entrepreneur Cas Paton, lodged the offer after it emerged that potential M2 Capital’s bid had collapsed
It is unlikely that the online marketplace, which was ranked as the UK’s the fastest growing ecommerce businesses last year with sales up more than 3000% since 2018, wants to buy any stores.
Poundland
Poundland is looking to acquire up to 100 Wilko stores.
The retailer, like Wilko, operates in town centre locations, which make its stores a good fit.
Although Wilko traditionally operates larger stores than Poundland, the retailer has been expanding its range of late, including adding a wider range of food to its shops.
The Wilko store acquisition could help accelerate this strategy.
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B&M
B&M is another retailer considering acquiring parts of Wilko.
According to reports, the variety store retailer is looking to snap up between 40 and 50 stores.
Wilko rival B&M has been incredibly successful over the past decade and has grown to more than 700 stores and has plans in place to open another 30 shops by the end of 2023.
The retailer trades from retail parks so taking on Wilko stores represents a departure – and potentially a new growth avenue – for B&M.
Analysts from stockbroker Numis revealed the purchase would boost the size of B&M’s UK store portfolios by 6%.
The Original Factory Shop
TOFS, previously called The Original Factory Shop, is understood to have lodged a bid for 10 Wilko sites, according to Sky News.
The retailer, which is owned by private equity firm Duke Street, has also vowed to interview Wilko staff at risk of redundancy for roles across its business.
Wilko is not the only collapsed retailer that TOFS has looked to for new stores. It also snapped up some sites from M&Co, which plunged into administration late last year.
TOFS will open 16 new stores in the next three months, creating up to 160 jobs, as it looks to “assert its position as the UK’s leading community and value, brand-led retailer”.
Home Bargains
Home Bargains has also expressed interest in Wilko stores.
It is not known how many stores Home Bargains, the value chain established in Liverpool in 1976, wants to take.
However, as the retailer trades from out-of-town retail parks, it is unlikely to acquire a large tranche of stores.
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