Wilko on verge of collapse

The bargain homeware shop Wilko is on the verge of collapse, it has been revealed. The company announced today it has filed a ‘notice of intention’ (NOI) to appoint administrators, after it was unable to raise enough cash to solve its money worries.

The move puts 12,000 jobs at risk, although the company is still hopeful it’ll be able to find a solution.

Boss Mark Jackson said:

“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.”

The NOI gives Wilko ten days to agree a deal while protected from action by creditors.

Even if Wilko doesn't find a solution in this time and has to file for administration, it doesn’t necessarily spell the end for the business.

Administrators will take control and they’ll try to help the company get back on its feet by repaying debts and solving its cashflow problems.

Like many retailers, Wilko is struggling due to a big drop in customer numbers, as people cutback in the face of the cost-of-living crisis.

Soaring energy costs and a move to online shopping have also hurt high street shops.