Wilko Files Notice Of Intention To Appoint Administrators

Wilko has confirmed it has filed a notice of intention to appoint administrators, putting around 12,000 jobs at risk.

A notice of intention is a document submitted to court to confirm that a company intends to enter administration. It prevents creditors from starting or continuing legal action against the company for ten days, unless they have permission from the court.

Administrators may not be appointed if the business is able to resolve its financial difficulties within the ten-day period, although Wilko has stated that despite receiving interest from potential buyers, no offers have yet been received that could provide the liquidity the business needs.

In a statement, Wilko chief executive officer Mark Jackson said: “While we can confirm we've had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don't today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we're faced with.

“Unfortunately, with this in mind, today we're having to take the difficult decision to file a notice of intention.

“We'll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we're in discussions with to move as fast as possible.

“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”

Source : Insight DIY Team

Image : Wilko

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