Troubled Romford retailer starts administration sale

Troubled retailer Wilko has launched an administration sale with thousands of products discounted while its future is decided by administrators.

The chain, which has a store in Romford’s Mercury Mall, has begun to put up signs across its UK branches promoting the Wilko Administration Sale, with a tagline reading “1000s of reductions throughout the store”.

The discounter appointed administrators on Thursday 10 August, after failing to secure a rescue deal.

With over 400 stores it will see over 12,000 jobs across the UK put at risk at Wilko.

Previously, Wilko filed a notice of intention to appoint administrators at the High Court.

The retailer is continuing to trade from all of its stores following it falling into administration, and shoppers will likely be drawn to the new sale.

However click-and-collect orders have been suspended and shortly before the administration announcement it had suspended its home delivery service.

Wilko had agreed on a deal to borrow £40 million from restructuring specialist Hilco after posting significant losses.

Also earlier this year the brand hired advisers from PwC in a bid to find a buyer and secure fresh funding.

However, a few weeks ago Wilko Chief Executive Officer Mark Jackson shared that the company had “no choice” but to file for potential insolvency.

Branches across the UK are now at risk of closing if a buyer is not found, administrators from PwC said.

Zelf Hussain, joint administrator, said: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today.

He added: “Wilko has been a staple of many British high streets for decades. We know that the appointment of Administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.

“As Administrators we will continue to engage with parties who may be interested in acquiring all or part of the business.

“Stores will continue to trade as normal for the time being and staff will continue to be paid.”