HMV Owner Reportedly In Talks Over Wilko

The Times has reported that Doug Putman, the Canadian businessman who owns HMV, has made a last-minute offer for Wilko.

He is understood to want to continue to run the business under the Wilko brand and, if his offer were to be accepted, could save up to 4,000 jobs and around half the store network, although a BBC report indicates that legal factors might prevent Mr Putman's rescue attempt.

It has been suggested by industry sources that PwC will put Wilko into liquidation, which would see the stores closed and stock sold off in order to create higher returns for creditors including Hilco, which provided a £40m lifeline to Wilko earlier this year.

On Wednesday, GMB Union stated that the majority of Wilko's stores were likely to close following a meeting with administrators in which its representatives were informed that there was no longer any prospect that the majority of the business will be saved. 

Sky News reports that B&M, Pepco Group and The Original Factory Shop have expressed an interest in acquiring about 150 of Wilko's 400 stores between them.

A spokesperson for PwC said: "As administrators we're intent on achieving the best outcome for everyone involved while preserving as many jobs as possible and adhering to our statutory duty to act in the best interests of the creditors as a whole.

"It would be inappropriate to comment on individual bidders or interested parties at this stage in the process."

The latest update from PwC (published on 23rd August) states: 

“Since our appointment as administrators of wilko we have held extensive discussions with parties who expressed an interest in buying all or part of the business. While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole Group. Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has today been necessary to update employee representatives.

“We know this will further add to the uncertainty felt by workers. We will be supporting staff through this deeply unsettling time, working closely with the government, JobCentre plus, unions and large employers to maximise possibilities for a rapid return to work for employees in the event of redundancies. 

“In the immediate term, all stores remain open, continue to trade and staff continue to be paid. Contrary to speculation, there are currently no plans to close any stores next week.”

Source : The Times; BBC; PwC; Sky News

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