Poundland owner agrees to take control of some Wilko stores

The business says these leases are in locations in which it has a limited presence, with the lease assignments expected to be completed by early Autumn. Once this process is complete, it has said it will prioritise recruitment for roles into these stores with existing Wilko staff.  

It comes just a day after a recuse deal by HMV owner Doug Putman – who had hoped to keep up to 300 Wilko shops open – fell through, with the Wilko name expected to disappear from the high street in early October.  

Commenting on its purchase, Poundland managing director Barry Williams said: “In the coming weeks we will work quickly with landlords so we can open these stores as Poundlands with the new ranges that have been pivotal to our recent development.  

“And once that process is complete, we will ensure a significant number of the Wilko colleagues will join our Poundland team. We know how valued Wilko colleagues have been in scores of communities across the UK and we look forward to offering them opportunities to join our family.

“We recognise the last few weeks have been difficult for them and we will move quickly to secure new consents from landlords so we can offer them the certainty they deserve. The Wilko stores will accelerate our existing transformation programme, offering amazing value for consumers, providing growth opportunities for suppliers and supporting employment in the high streets, shopping centres and retail parks customers love.”

Pepco Group chairman Andy Bond added: “The agreement to assign a number of Wilko store leases to Pepco Group will help to bring Poundland’s value and wide offer to even more customers in the UK. It will be pleasing to offer employment to a number of Wilko’s colleagues - who will benefit from being part of a successful and fast-growing pan-European variety discount group.  

“Pepco Group is well placed for future success across Europe, supported by its market-leading customer proposition, strong balance sheet and impressive cash flow. The group’s strategy to become a bigger, better, cheaper and simpler business will enable it to continue to provide families on a budget with great range, value and convenience for many years to come.”  

Poundland becomes the second business in a week to purchase Wilko property from its administrators, with PwC last week agreeing a £13m deal with fellow discount retailer B&M to buy up to 51 properties – although the deal did not include a jobs guarantee.