Wilko rescue deal falls through

As a result, job cuts at the discount retailer’s head office and warehouses are understood to begin, with around a third of the 1,4000 staff at the group’s headquarters and distribution centres expected to be made redundant.

Administrators PwC had suspended job cuts as it considered the bid, from M2 Capital, for the entire business. According to The Guardian, the jobs that are set to go on Monday include those in the commercial trading team and IT, finance, legal and human resources.  

It’s, however, believed administrators PwC is still in talks with HMV Doug Putman about a deal. However, it’s understood he does not want to hold on to Wilko’s back-office function, only the brand and its stores.

M2 claims to have set up funds to buy hotels and car parts makers, but has yet to complete any deal. It was the only bidder that has pledged to take on Wilko’s support staff as well as its shops, however it has not satisfied administrators that it has the necessary backing to do so.