HMV owner Putman edges closer to rescue deal for bulk of Wilko
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The owner of HMV is finalising a deal to rescue the majority of Wilko’s operations, salvaging more than 8,000 jobs at the stricken high street retailer.
Sky News has learnt that Wilko’s administrators, PricewaterhouseCoopers (PwC), began consulting the chain’s major creditors on Thursday on the terms of an agreement with Doug Putman.
One source with financial exposure to Wilko said Mr Putman intended to acquire more than 300 of its 400 stores, meaning that between 8,000 and 9,000 jobs of a total workforce of 12,500 could be saved.
Depending upon further deals with other retailers to buy some of Wilko’s stores, however, that could mean several thousand high street workers face losing their jobs.
A deal with Mr Putman could be announced in the next few days, although people close to the situation cautioned that some uncertainty remained until it was agreed.
The final store and job perimeters involved in the deal are also yet to be formalised, according to one creditor.
“It’s still in the balance but it is beginning to look more positive that a deal can get done,” the creditor said.
On Thursday, PwC confirmed the first redundancies since its appointment when it announced that 283 jobs would be lost, mainly at its support centre operations.
“We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work,” Jane Steer, joint administrator, said.
“Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect.”
Details of Mr Putman’s deal structure were unclear on Thursday, although he has approached financiers including Gordon Brothers, the specialist retail investor, about backing a deal, Sky News revealed last weekend.
PwC has been seeking external investment for Wilko for months – a search which acquired greater urgency three weeks ago when the accountancy firm was formally appointed as administrator.
Poundland’s parent and B&M European Value Retail have been eyeing the purchase of 150 shops between them, although those deals would not take place if Mr Putman succeeds in buying the bulk of its outlets.
The Range, another value retailer, has made an offer to buy Wilko’s brand and online operations.
A further bidder for Wilko, M2 Capital, reportedly tabled an offer for the whole group but on Thursday the GMB union said it had been informed by PwC “the one bid for the entire business has fallen through as the bidders have failed to provide the necessary evidence to show that they had the finances necessary to purchase the company despite being given numerous opportunities to do so”.
PwC said: “Since their appointment, the administrators have been working closely with Wilko, its employees and suppliers and have considered multiple varied bids and expressions of interest related to the group.
“While discussions continue with those interested in buying parts of the business, it is now clear that no viable offer structure put forward includes the group in its entirety.”
The union added in a message to members: “For staff in stores and online, PWC are continuing to assess bids and we remain hopeful that there is one from a viable buyer on the table.
“However, at this stage we cannot in any way guarantee this and must therefore continue to prepare for the worst.”
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Wilko was established by the Wilkinson family in 1930, and sells homewares and garden furniture at discounted prices.
Shortly before it crashed into administration, Sky News revealed that Gordon Brothers, Alteri Investors and Opcapita were examining last-ditch proposals to invest in the business.
Like many high street retailers, it has been hit by inflationary pressures and supply chain challenges.
In recent months, it had been seeking to finalise a company voluntary arrangement (CVA) – a mechanism that would have triggered steep rent cuts at hundreds of stores but avoided any closures.
Mr Putman could not be reached for comment, while PwC has been contacted for comment.
