Jobs cuts at retailer Wilko expected to start next week as rescue bid fails

Hopes of saving jobs at retailer Wilko look to have been dashed after the collapse of a private equity takeover.

Administrators PwC say the process of making redundancies at Wilko, which has 400 UK stores, including two in Peterborough – at Hereward Cross Shopping Centre and at the Ortongate Shopping Centre, in Orton Goldhay - plus support and distribution centres, will resume next week.

The discount chain, which went into administration earlier this month, employs about 12,500 staff across the country.

Currently all of Wilko’s stores are open and trading with many as much as 30 per cent savings to be found on many products.

It has been reported that it is a £90 million bid by private equity firm M2 Capital for the entirety of Wilko that has fallen through.

The administrators are thought to be in talks with the owner of HMV as well as Poundland, B&M and The Range.

A spokesperson for the GMB union said that most staff working in Wilko’s commercial trading team and IT, finance, legal and HR divisions will have their ‘last day’ with the retailer on Monday with warehouse staff redundancies to start next week.

However, union officials say they are hopeful there is a ‘viable buyer’ still talking to administrators to save the jobs of staff in stores and online but warn this cannot be guaranteed and staff must prepare for the worst.

Jane Steer, joint administrator at PwC, said: “It’s with great sadness that we announce these redundancies.

“We will continue to do all that we can to support staff through this period of difficult upheaval.”