Wilko rescue collapses - report

(Sharecast News) - A bid to buy the entire Wilko business has reportedly fallen through. According to Sky News, private equity firm M2 Capital had hoped to buy the homeware chain and its 400 stores, but the deal is off following talks with administrators PwC.

Job losses are now expected among Wilko's head office, distribution and support centre staff, Sky said.

Around 1,300 roles are at immediate risk of redundancy, but some of those will be saved as they are needed to keep stores running.

The retail chain, which employs around 12,500 staff in total across the country, collapsed earlier this month after struggling from inflationary pressures, competition from rivals and supply chain challenges. But its branches have remained open since then in the hope a buyer can be found.

It was understood that other bids for parts of the business have been received, which administrators will now focus on.

Poundland-owner Pepco Group and B&M European Value Retail are among the firms aiming to acquire part of Wilko's store estate.

HMV owner Doug Putman also expressed an interest in making a bid prior to PwC's deadline of last Friday.

According to Sky, no store closures or store redundancies are expected this week.