UK DIY News
Wilko Advises Landlords of Move to Monthly Rent Payments
According to the Sunday Times, the discounter Wilko has made its landlords aware that it will be paying its quarterly rent bill in monthly instalments to manage cashflow as it conserves cash in order to stock up for Christmas.
According to the source the family-owned discounter has made the move due to “supply-chain volatility” and the “inflation we’re all currently suffering”.
Wilko has recently been working with advisers from Interpath Advisory on a refinancing of its £37.5 million revolving credit facility and an agreement is expected shortly.
Wilko chief executive Jerome Saint-Marc told The Sunday Times “Trading is tough for everybody … we’re having to make smart choices. We’re confident in our financial stability and have strong plans for the future. No covenants have been breached on our current facility.”
In the financial year to January 2021, Wilko reported pre-tax profits of £4.4 million on sales of £1.36 billion, however, this year it suffered from supply-chain disruption, high freight and increasing wage bills.
Source: Sunday Times & Insight Team
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