Wigan’s Wilko shop to close later this month after last-ditch rescue bid for stricken retailer fails

The retailer has announced 124 more stores which will shut between Sunday September 17 and Thursday September 21.

The chain’s remaining stores are all set to shut by early October after administrators failed to secure a deal from any suitor to buy the business.

There were still faint hopes that the high street chain’s branches in Wigan and Leigh town centres could be saved if the rescue deal to buy around 200 Wilko shops proved successful, but its collapse means that another 9,100 people who work for the failed retailer will be made redundant, administrators PwC confirmed on Monday after talks to save hundreds of shops fell apart.

The 90-year-old retail chain tumbled into administration early last month after it came under pressure from weak consumer spending and debts to suppliers.

The GMB Union has said that the hopes of a deal which could have saved hundreds of stores and thousands of jobs have collapsed.

“We are incredibly sorry to have to share the devastating news that (administrators) PwC have confirmed the previous offer being explored for the sale of hundreds of stores as a going concern has fallen through,” the union said.

“There is now no prospect of saving the remaining store estate in its entirety and all Wilko stores will close by early October with DCs (distribution centres) to close on Friday September 15.”

It added: “Although separate bids may be made for leases of groups of sites, these deals will not secure jobs, although the option to take up new employment with the bidders for these sites is something we are now pushing for.

“This is not the news our members or the GMB had been hoping for or working towards.

“We share the sorrow and anger of every Wilko team member today.”

Administrators for the high street chain had been in discussions with Doug Putman, of Putman Investments, over a deal to buy around 200 Wilko shops.

Mr Putman, founder of Putman Investments, said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.

“We had financing in place and received the full support of PwC, Wilko management and staff representatives, which we are deeply thankful for considering what a challenging time it has been for them.

“However, commitment to overhauling the trading framework of the business with partners and the costs of running Wilko’s legacy operations infrastructure combined has meant that a stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted.”

Sky News has reported that administrators from PwC are now in talks with Poundland over a potential deal to offload about 100 stores.

Other high street chains including The Range and Home Bargains have also reportedly signalled their interest over potentially buying the Wilko brand or stores.

Wilko, which employed around 12,500 staff, has already announced a £13m deal to sell 51 shops to B&M, although the rival discounter has not agreed to take on Wilko workers as part of the deal.

Administrators have already announced more than 1,600 redundancies at Wilko in recent weeks.

This week the retailer will shut 52 shops in a move which will lead to 1,016 redundancies.

It said 24 of its shops will close on Tuesday September 12, with a further 28 shops due to shut on Thursday September 14.

PwC has also announced hundreds of redundancies affecting workers at the firm’s warehouses in Worksop and Newport, as well as cuts at its support centre.

The struggling retailer has been in trouble for months, following reports that the owners were sounding out potential buyers in a bid to salvage the chain's future.

This would have seen the Wilkinson family relinquish majority control of the company for the first time since the first store opened in Leicester in 1930.