Administrators for high street retailer Wilko say stores will stay open for now without any immediate job losses, and staff will continue to be paid.
PwC has been appointed as administrator and say they will continue to look for a buyer for all or part of the group. The news offers some hope to staff at Wilko stores in Porthmadog, Pwllheli and Carmarthen.
Wilko warned last week it was on the brink of collapse due to mounting cost pressures.
The homeware retailer which has stores in Porthmadog, Pwllheli and Carmarthen, filed a notice of intent (NOI) to appoint administrators – putting 12,000 jobs at risk across its 400 stores in the UK.
CEO Mark Jackson said: “We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
PwC will handle the administration for Wilko, which is believed to have around 400 stores.
Reacting to the announcement last week that Wilko was in trouble, Dwyfor Meirionnydd politicians, Liz Saville Roberts MP and Mabon ap Gwynfor MS said in a joint statement: ‘This announcement will cause real anxiety and uncertainty for staff, at a time when the cost-of-living crisis is causing an unprecedented squeeze on household finances.
“Our thoughts are first and foremost with all the staff likely to be affected by this devastating news, particularly workers at our local stores in Porthmadog and Pwllheli.
“We hope a speedy and positive outcome can be achieved, but our offices stand ready to support those affected by this decision.”
Jane Steer, Zelf Hussain and Edward Williams of PwC have been appointed joint administrators of Wilkinson Hardware Stores Ltd, Wilko Ltd and Wilko.com Ltd ( “the Companies” or “Group” or “wilko”).
The appointment was made on 10 August.
Initially Wilko will continue to trade all stores without any immediate redundancies as discussions with interested parties continue. If buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow.
Zelf Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.
“Many high street retailers are facing a number of well-documented challenges and Wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.
“Wilko has been a staple of many British high streets for decades. We know that the appointment of Administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business - particularly its committed team members - and the communities it serves.
“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”