Wilko Stores Could Close as Discount Giant Enters Early Stages of Major Shakeup
Key Highlights :
Wilko, a prominent high-street retail chain, is in the ‘early stages’ of a major shakeup – with fears that stores might close. The discount giant currently has stores in Arundel Shopping Centre in the centre of Portsmouth, The Meridian Shopping Centre in Havant, Dukes Walk in Waterlooville, Market Quay Shopping Centre in West Street, Fareham, and across Hampshire.
The company is understood to have been considering a company voluntary arrangement (CVA) to restructure, according to the Daily Mirror. A CVA allows a business to restructure but continue trading as normal. This means that shops could be closed and rent will be negotiated to keep costs down in some situations.
CEO Mark Jackson made a statement yesterday about a new ‘turnaround programme’. There is no direct mention of stores shutting in the statement, but the CEO said Wilko is currently going through the phase of stabilising the business. He said: ‘We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.’
Mr Jackson added that he is ‘confident with the right actions’ that Wilko will continue to be a ‘key feature’ on the high street. As reported by Bloomberg, the chain has approached PricewaterhouseCoopers (PwC) to explore various restructuring options. Cost-cutting measures have been implemented since the beginning of the year – with 400 jobs being cut.
The news of Wilko’s potential closure has come as a shock to many shoppers in the local area. One customer told the Daily Mirror: ‘I love Wilko, it’s a great shop. It’s a shame if it closes. It’s really convenient for me when I need to buy something quickly.’
The news of Wilko’s potential closure has also sparked concern about the future of other high street retailers. Many shoppers are worried that this could be the beginning of a wave of closures in the retail sector.
It remains to be seen what the outcome of Wilko’s restructuring process will be. For now, shoppers in the local area will be hoping that the discount giant can find a way to remain open and continue to provide them with the products they need.
