B&M has successfully agreed to buy up to 51 Wilko stores, following the collapse of the competing discount chain.
The Wilko brand, which recently found itself in administration, has been the focus of intense negotiations led by insolvency experts from PricewaterhouseCoopers (PwC) over the past few weeks.
Wilko’s dire financial situation prompted administrators to engage in discussions with a range of potential investors including Doug Putman, the proprietor of HMV.
The main aim was to preserve the futures of Wilko’s 400 stores and safeguard the employment of its 12,500 workers.
On Tuesday, B&M European Value Retail announced a momentous development as they disclosed their agreement to acquire up to 51 Wilko stores from the administrators, in a deal valued at a potential £13 million.
Preserving a British brand
This strategic move not only signals another significant shift in the retail landscape but also provides hope for the continuation of a substantial number of jobs and the preservation of an iconic British brand.
In a statement, B&M added: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances.
“An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”
Notice of intention for Wilko
In August, Wilko CEO Mark Jackson confirmed the company would file a note of intention.
He said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.
“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.
“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”
