Additional 9,100 Wilko staff to be made redundant after rescue deal collapses, directors say

An additional 9,100 Wilko staff might be made redundant by early October, directors have mentioned.

PricewaterhouseCoopers (PwC) failed to succeed in a deal to save lots of any vital a part of the retailer after it collapsed into administration final month.

“It is anticipated that all stores will be closed by early October, resulting in the redundancies of a further 9,100 employees in those stores,” PwC mentioned.

It comes after Sky News revealed a rescue deal involving the owner of HMV had collapsed.

PwC beforehand introduced round 1,600 redundancies at Wilko and confirmed that 52 stores would shut this week after it didn’t discover a purchaser for them.

Read extra: Full list of Wilko stores set to close this week

The directors mentioned of their assertion on Monday: “Staff at 124 shops have at the moment been knowledgeable that these shops will shut on, or earlier than, Thursday 21 September.

“Timings for the closure of the remaining 222 stores will be announced in due course.”

Earlier, Sky News reported 400 branches of the collapsed retailer would close by early October with the “likely” lack of all 12,500 jobs on the chain, based on the GMB.

GMB boss Gary Smith instructed Sky News’ Politics Hub With Sophy Ridge that Wilko would price the taxpayer “tens and tens of millions of pounds” – and {that a} quarter of the Wilko staff will not get redundancy pay.

He added the regulation prioritises collectors over job safety, which has led to this case.

Mr Smith claimed that as a result of lack of correct session and the ensuing redundancies “the taxpayer is going to pick up the bill” for prices associated to redundancy funds, failure to seek the advice of, and potential discover pay, amounting to tens of thousands and thousands of kilos.

Although different corporations are nonetheless within the operating to take over a few of Wilko’s retailers, GMB mentioned that these have been solely within the property, and any offers wouldn’t embrace staff.

B&M European Value Retail has already agreed to buy 51 Wilko stores that are set to be rebranded. It is unclear if the low cost chain will carry on or rehire any of the Wilko workers on the branches.

A retail govt near the scenario mentioned PwC was additionally searching for to strike an settlement with the proprietor of Poundland to dump one other 100 Wilko shops.

The 93-year-old chain, which was based in 1930 in Leicester, collapsed after being hit laborious by inflationary pressures, competitors from rival retailers and provide chain challenges.

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Zelf Hussain, joint administrator at PwC, mentioned: “As with those who have already been given notice of redundancy, we will guide and support those team members impacted over the coming weeks through the redundancy claims process.

“We additionally proceed to collaborate intently with related businesses and interact with any potential employers to assist facilitate a fast return into new employment for these impacted.

“We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days.”

The following shops will shut on Tuesday 12 September:

Acton
Aldershot
Barking
Bishop Auckland
Bletchley FF
Brownhills
Camberley
Cardiff Bay Retail Park
Falmouth
Harpurhey
Irvine
Liverpool Edge Lane
Llandudno
Lowestoft
Morley
Nelson
Port Talbot
Putney
Stafford
Tunbridge Wells
Wakefield
Weston-super-Mare
Westwood Cross
Winsford

The following shops will shut on Thursday 14 September:

Ashford
Avonmeads
Banbury
Barrow in Furness
Basildon
Belle Vale
Burnley (Relocation)
Clydebank
Cortonwood
Dagenham
Dewsbury
Eccles
Folkestone
Great Yarmouth
Hammersmith
Huddersfield
Morriston
New Malden
North Shields
Queen Street Cardiff
Rhyl
Southampton-West Quay
St Austell
Stockport
Truro
Uttoxeter
Walsall
Woking

The following shops will shut on Tuesday 19 September:

Aberdare
Alfreton
Ashby
Barnstaple
Belper
Beverley
Blackheath
Brigg
Byker
Chepstow
Clifton Nottingham
Colindale
Devizes
Didcot
Earlestown
East Ham
Great Bridge
Greenbridge
Grimsby
Hessle Road – Hull
Jarrow
Kimberley
Leighton Buzzard
Long Eaton
Maesteg
Matlock
Middleton
Newton Abbot
Redcar
Ripley
Seaham
Sherwood
Stamford
Stevenage
Swanley
Tamworth
Wrexham
Wythenshawe

The following shops will shut on Thursday 21 September:

Allestree
Andover
Bedford
Beeston
Bicester
Bloxwich
Bolton
Bordon
Bransholme
Bridgend
Bury
Carlton
Clacton on Sea
Cramlington
Crewe
Cwmbran
Cyfarthfa
Denton
Driffield
Droitwich
Edmonton Green
Farnborough
Fort Kinnaird
Fulham
Gateshead
Gorleston
Grays
Greenock
Havant
Hereford
Hillsborough
Holyhead
Newton Aycliffe
Northampton
Orton
Parc Trostre Llanelli
Penge
Peterlee
Pwllheli
Shrewsbury
Slough
Swindon
Tamworth Retail Park
Taunton
Walton on Thames
Wheatley Retail Park
Wigan
Wolverhampton