THERE could be hope for Wilko fans as stores could be saved by rival discount chains, The Sun understands.
It comes after the bargain retailer collapsed into administration yesterday following failed rescue talks.
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There could be hope for Wilko fans as stores “could be saved” by rival discount chainsCredit: Alamy
Sources say that Wilko rivals could be in line to snap up between 200 to 300 shops.
The chain appointed administrators yesterday, with all control of the business being passed over to PricewaterhouseCoopers (PwC).
It had been in a race to find a new owner after filing a notice of intent to appoint administrators last week.
But today there is fresh hope that the majority of the stores could be saved as two discount chains and financial backers are said to have expressed interest in buying the business.
Currently, all 400 shops are continuing to trade as usual but fears have been growing over the future of the chain, as well as 12,000 jobs which are also at risk.
Although the Wilko has now stopped processing all online deliveries and shoppers are limited to click and collect orders instead.
Former Wilko boss Gordon Brown told the BBC that he believes a buyer will swoop in to save parts of the company, but “it will be different from Wilko as we know it, or used to know it”.
But, some experts have told The Sun that it could be difficult to reach a deal to save stores.
Rival discounters like B&M and Home Bargains have succeeded in out of town locations.
Most of Wilko’s stores are located on the high street, where shoppers tend to buy less and rents are higher, making them less appealing to any potential buyer.
Retail analyst Richard Hyman told The Sun: “I’m not sure any of the string discounters would want the stores – they have generally avoided high streets to focus on retail parks, which are better locations for this kind of retailing.
“However, Wilko’s stock will be a major attraction. At retail prices, there will be between five and £600 million of stock and the opportunity to acquire it at a knock down price will attract some opportunists.”
A buyer could save stores and the brand, or could just purchase the brick and mortar sites to use as their own. Or a deal could include no stores at all, instead buying up the stock or brand name.
Mr Hyman added that due to the size of the stores, which tend to be pretty big, changes would likely need to be made.
He said: “To have any chance, you’d need a radically edited product offer which by definition, needs much less space.
“Some stores will be well located in attractive catchments but many, I fear, are likely to be left on the shelf.”
While Dr Amna Khan, a senior lecturer in consumer behaviour and retailing at Manchester Metropolitan University, explained that it might be a case that just some of the stores are snapped up.
She said: “The store location of Wilkos may not be the most suitable for discount retailers.
“A discount retailer might not take them all, but may consider cherry picking a few that are suit them.”
Across social media shoppers have been sharing their emotional tributes to the discounter, with many comparing it to the loss of Woolworths.
Chief Executive Officer, Mark Jackson, said yesterday that the company had “left no stone unturned” in a bid to save the chain.
In an emotional open letter to all staff and heartbroken shoppers, Mr Jackson thanked them for their support.
The retailer had been in talks with several companies to find a buyer including the firm behind Laura Ashley – but hopes of a rescue deal failed.
Numerous high street brands have collapsed into administration over the past year.
Wilko’s fall is the biggest British retail collapse since McColl’s plunged into administration in May last year.
But the cornershop chain was saved from closure after Morrisons swooped in to protect 16,000 jobs.
While fashion retailer M&Co also went, with all 170 stores shutting this year.
The brand name though was bought by Yours Clothing, which now has plans to open 50 new M&Co branded stores over the next two years.
Meanwhile, here is the full list of 400 Wilko stores at risk of closing.
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Source: newstars.edu.vn