B&M to buy up to 51 Wilko stores from administrators
B&M European Value Retail said it is a deal worth up to £13 million.
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Your support makes all the difference.B&M has sealed a deal to buy up to 51 Wilko stores from administrators following the collapse of the rival discount chain.
Wilko fell into administration last month, with insolvency experts from PwC spending recent weeks seeking to hammer out a rescue deal for the historic retailer.
Administrators have held talks with a raft of suitors, including HMV owner Doug Putman, in order to save Wilko’s 400 stores and 12,500 jobs.
On Tuesday, B&M European Value Retail said it has agreed to acquire up to 51 Wilko sites from the administrators in a deal worth up to £13 million.
In a statement, B&M added: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances.
“An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”
The B&M group runs around 1,150 stores in the UK and France under the B&M and Heron brands.
It is understood that the majority of the new stores are expected to rebrand as B&M.
PwC remains in further talks regarding Wilko’s remaining stores, brand and other assets.
It is understood that Mr Putman, who rescued HMV out of insolvency in 2019, is still in talks with administrators over a deal .
It comes after reports on Monday that his original plans to buy around 300 stores were however impacted by difficulties related to Wilko’s debts to suppliers.
Last week, PwC announced the first set of job losses linked to Wilko, with 269 support centre workers in Worksop and Newport being made redundant.
The sale of 51 stores to B&M offers a small glimmer of hope for the Wilko employees at the sites to be acquired
Jeremy Whiteson, restructuring and insolvency partner at Fladgate, said: “The sale of 51 stores to B&M offers a small glimmer of hope for the Wilko employees at the sites to be acquired.
“While reports so far have not confirmed the position of employees, if B&M wants to continue to operate a similar business from these sites, it is likely that contracts of employees engaged at those sites will be automatically transferred to the buyer as a matter of law.
“Unfortunately, the B&M deal is less likely to offer any benefit for employees based at other locations.
“Although, as other bidders are continuing discussions, it is possible that other sites are yet to be acquired.”