London — Failed retailer Wilko will disappear from British high streets next month, as its entire chain of 400 homeware stores close with all 12,500 jobs probably lost, the GMB trade union said on Monday.
Citing Wilko’s administrators, GMB said that the stores will close by early October, while two distribution centres will close on Friday next week.
“This means that redundancy is now likely for all 12,500 workers,” said GMB.
The news follows hopes in recent weeks of a deal being reached to buy the retailer, which collapsed last month after suffering a cash squeeze after a downturn in trading.
A recent bid by Canadian business-person Doug Putman, owner of HMV music stores, to buy a majority of Wilko failed due to costs complications, according to British media reports.
Wilko, which started as a hardware store in 1930 in Leicester, central England, succumbed to Britain’s tougher economic environment and cost-of-living crisis, grappling with high inflation and a series of interest rate rises.
“This isn’t a tragedy without cause,” said GMB national officer Nadine Houghton. “Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners.”
Wilko’s administrators, PwC, did not immediately respond to a request for comment.
Reuters
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