HMV owner Doug Putman is closing in on a deal to buy struggling budget retailer Wilko, after a rival £90 million bid collapsed earlier today leaving thousands of jobs uncertain.
According to Sky News, Putman is working to complete a deal to rescue the majority of Wilko's operations, saving more than 8,000 jobs. One source with financial exposure to Wilko told the outlet that Putman intends to acquire more than 300 of its 400 stores, as the news outlet predicted this could result in 8,000 or 9,000 jobs being saved.
"It's still in the balance but it is beginning to look more positive that a deal can get done," the creditor told Sky News.
The news will come as some encouragement to Wilko workers after the GMB union confirmed earlier today that one bid for the entire business, understood to be M2 Capital's last-minute offer, had "collapsed". The union said the private equity fund was unable to provide proof of funding.
The union had warned that redundancies would begin from Monday after the failed bid.
Andy Prendergast, GMB national secretary, said in a statement: "For staff in stores and on-line, PwC are continuing to assess bids and we remain hopeful that there is one from a viable buyer on the table. However, at this stage we cannot in any way guarantee this and must therefore continue to prepare for the worst."
The union had said that redundancies will start almost immediately after the failed M2 bid, starting with volunteers. Staff working in the commercial trading team, IT, finance, legal and HR are expected to follow.
In a statement issued today, PwC said administrators continued to hold discussions with interested parties, although none of the bids would rescue the brand as it exists currently.
“It is now clear that no viable offer structure put forward includes the group in its entirety,” PwC said. It confirmed that 269 support centre team member roles would be made redundant, with further redundancies across Wilko’s two distribution centres beginning early next week.
“The administrators will continue to liaise closely with the government, agencies, unions and large employers to help create avenues to further employment opportunities for affected staff, it added.
It added that no viable offers had been received for Kin Limited, a subsidiary of Wilkinson Hardware Stores, resulting in 14 job losses. All Wilko stores are currently trading and remain open.
Wilko called in administrators on 10 August, putting more than 12,000 jobs and 400 stores at risk. The chain is the largest retailer to collapse into administration since the convenience-store business McColl’s, which employed about 16,000 people, a year ago. That chain was rescued by supermarket Morrisons.