Wilko redundancies paused as administrators consider bids

(Sharecast News) - Job cuts for Wilko's 12,500 staff were reportedly halted on Tuesday, amid ongoing discussions over the future of the troubled retailer. Sky News reported that administrators from PwC, who took charge of the business after it collapsed earlier in August, said in a meeting on Tuesday morning that no immediate layoffs would occur as a number of bids for the business were being considered.

The discount homeware chain had been struggling to stay afloat amid inflationary pressures, stiff competition and supply chain issues, as well as a number of controversial dividend payments to its private owners, ultimately leading to its collapse.

Its 400 branches had, however, remained open as the administrators looked for a new owner.

Last Friday had been set as a deadline for potential buyers to submit bids.

The GMB union had previously warned that it expected most Wilko stores to close in the coming weeks, as it seemed unlikely that the majority of the business would survive.

However, after Tuesday's meeting, Sky reported the union as saying that PwC has received multiple offers for the company, putting any prospective job cuts on hold for the time being.

"Whilst this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs," the union's national secretary Andy Prendergast was quoted as saying.

A number of last-minute bids to acquire parts of the retailer arrived ahead of the long weekend, including from Canadian HMV owner Doug Putman, London-listed discount retailer B&M European Value Retail, and the Steinhoff-owned South African Pepkor, which owns Poundland.

Reporting by Josh White for Sharecast.com.