Gordon Brothers Reportedly Considering A Rescue Bid For Wilko

Sky News reports that Gordon Brothers - a global advisory, restructuring, and investment firm which acquired the global Laura Ashley brand, archives, and related intellectual property in April 2020 - is considering a rescue bid for Wilko.

At the weekend, The Sunday Times reported that potential buyers would have to invest approximately £70 million to secure the future of the business, which announced it had filed a notice of intention to appoint administrators last week. Between £25 million and 30 million would be needed to secure stock, while a further £40 million would be used to cover debt incurred by Hilco, which provided Wilko with a loan in January of this year. 

The Times also revealed that Wilko has failed to pay its business rates bills for the past three months, with an anonymous property expert predicting that bailiffs would be likely to start removing goods from stores in the next three to four weeks. 

Wilko was left with no option but to file the notice when a supplier filed a winding-up petition, and its logistics provider, GXO, stopped deliveries. Deliveries have recommenced and Wilko is protected from legal action for a two-week period.

The Times also reports that Wilko's advisor, PwC, is in discussion with one of the chain's competitors and two private equity firms over a rescue deal. 

Source : Insight DIY, The Times, Sky News

Image : Ceri Breeze / shutterstock.com (1077137954)

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