Wilko Secures Funding From Hilco

Sky News has reported that wilko has secured £40m in funding from Hilco.

Hilco is a prominent financial investor and adviser, which specialises in dealing with businesses which are underperforming, non-core subsidiaries, retirement sales or which are distressed. Homebase and Cath Kidston are owned by Hilco, the former having been purchased for £1 from Wesfarmers in 2018. 

In late November, wilko warned on performance, advising that for the year ended January 29th 2022, it had noted a 30% drop in footfall and group sales decline of £43.2 million to £1.31 billion. Like-for-like sales declined by 3.1%. 

Around the same time, it was confirmed that Alison Hands, wilko's managing director, was to leave the business to become CEO of Lincolnshire Co-op.

In December, it was announced that Mark Jackson, the CEO of Bensons for Beds, had been appointed CEO designate and the business was readying for a turnaround. 

Wilko issued the following statement to Sky News: "Against a backdrop of major supply chain disruptions and significant footfall declines, particularly on the high street, Wilko recognises that it has not been performing to its full potential and is making strategic changes, including accelerating its omni-channel offer to turnaround the business." 

Source : Insight DIY Team

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