Hilco Believed To Have Provided Additional Funding To Wilko

Sky News has reported that Hilco - the owner of Homebase - has given Wilko additional funding to support the business during the coming weeks.

The cash injection is understood to be around £5 million, following on from a £40 million loan lifeline given by Hilco in January of this year. 

In June, it was reported that Wilko had hired property agent CBRE to negotiate with landlords, following a report in May that suggested the business was considering entering into a Company Voluntary Arrangement (CVA), and had approached PricewaterhouseCoopers (PwC) for support in exploring restructuring options.

Last week, it was revealed that PwC has begun approaching potential buyers on Wilko's behalf, with a view to selling a controlling stake in the business. At the time, Mark Jackson, Wilko's chief executive, issued the following statement to Sky News: "We've been very open that we're exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist.

"We have a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that delivers significant return, accelerated by the investment needed.

"We are actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery."

When approached by Sky News over the weekend, Hilco declined to comment, while Mr Jackson said suggestions of "additional cash lending on top of agreed facilities is incorrect" adding, "As per previous statements issued to Sky News, we've already confirmed that we're exploring a re-capitalisation and this remains ongoing."

Wilko is currently one of the largest privately owned retailers in the UK, employing around 12,000 staff and operating 408 stores.

Source : Insight DIY, Sky News

Image : Ceri Breeze / shutterstock.com (1077137954)

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