A Lichfield shop will remain open for the time being despite its owners going into administration.
Administrators from PricewaterhouseCoopers said that while 400 Wilko stores across the country would continue to trade for the time being, job cuts and store closures could follow if no buyers are found for the business.
In a statement, Wilko CEO Mark Jackson said the process was the only option left for the company.
“Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
“We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
“Significant work has been completed to streamline costs and transform the way the business operates, and our robust turnaround plan, based on annualised cost savings, would have delivered the most profitable Wilko ever recorded within 24 months.
“While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, without the surety of being able to complete the deal within the necessary time frame and given the cash position, we’ve been left with no choice but to take this unfortunate action.
“I’d like to take this opportunity on behalf of the directors and the Wilkinson family to thank all of our customers, suppliers, partners and our hardworking team members across our stores, logistics and support centre who remained loyal to Wilko.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out, and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
Mark Jackson, Wilko
Wilko, originally known as Wilkinson, was founded in 1930 by James Kemsey Wilkinson, who opened his first hardware store in Leicester.
The company expanded to sell a wider range of goods, including DIY supplies, gardening essentials and homeware, before rebranding as Wilko in the 1970s.
