Wilko owners explore potential sale
Advisors are now said to be seeking out potential buyers, with sources telling Sky that a ‘large number’ of large general merchandise chains have been approached
The owners of Wilko are reportedly exploring a potential sale of the chain in a bid to rescue the group’s future, Sky News has reported.
Advisors are now said to be seeking out potential buyers, with sources telling Sky that a “large number” of large general merchandise chains have been approached about a potential takeover.
The news comes only weeks after PwC, Wilko’s advisor, entered talks with prospective financial investors about raising new equity to fund the business through a restructuring process.
Sources told Sky that Wilko needed to source sufficient additional capital in the next month in order to secure its future.
In a statement, Mark Jackson, Wilko CEO said: “We’ve been very open that we’re exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist. We’ve a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that delivers significant return, accelerated by the investment needed.
“We’re actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery.”
Last month, it was reported that some landlords of Wilko stores could receive no rent for three years, as the chain looks to make drastic cost cuts ahead of a restructuring vote.
According to the Sunday Times, Wilko was looking to slash its rent bill as part of a potential CVA.
The Times said the discount chain was seeking rent cuts on up to 250 of its 400 shops, with some landlords set to receive no rent until, under the terms of the CVA, the rent reverts to the contractual amount after three years.
It was also recently reported that Wilko appointed property advisers ahead of crunch talks with landlords as the group looks to cut rents across its estate. According to Sky News, the group drafted in property agent CBRE ahead of formal negotiations with shop owners.
A source told Sky that Wilko was “unlikely” to permanently close a substantial number of its stores as part of the CVA, with the restructuring set to focus on rent reductions instead.
The development comes weeks after PricewaterhouseCoopers (PwC), which is advising Wilko, started discussions with prospective financial investors about raising new equity to fund the business through a complex restructuring process.
