Thousands of jobs at risk as Wilko faces closure

Britain's discount retail chain, Wilko, has warned that it is on the risk of collapse, putting 12,000 jobs at risk.

The discount retail chain which sells homeware and household goods, filed a notice of intention to appoint administrators on Thursday, reported Reuters.

Wilko said it had received indicative offers to help recapitalise but none of them were able to provide sufficient liquidity in the time needed, meaning it was set to call in administrators.

The retailer could be one of the first major victims of Britain's tougher economy, after consecutive interest rates rises that started in December 2021.

Despite the squeeze on household incomes from the jump in interest rates and high levels of inflation, most high street chains have been able to keep trading well so far this year.

"This is extremely concerning," the GMB trade union, which represents about 4,000 workers at Wilko, said in a statement. "Wilko's staff deserve reassurance that their jobs are safe."

Wilko's Chief Executive Mark Jackson said he hoped the privately-held retailer would be bought.

"We'll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business," he said in a statement.

Wilko operates from 400 stores across the UK, where it competes with rivals such as B&M (BMEB.L), and has an annual turnover of 1.2 billion pounds ($1.5 billion).

The discount chain has been struggling for months and had been considering a company voluntary arrangement, under which some of its landlords would have received no rent for three years.