UK home and lifestyle chain Wilko filed a notice of advice on Thursday for the appointment of administrators, underscoring the crisis facing the company.
Wilko said the company had received instructions to assist with recapitalization, but none of the proposals would provide sufficient liquidity support during that time, so the company needed to call in administrators.
Wilko has become the first company to fall victim to Britain’s struggling economy after the Bank of England has raised interest rates several times since the end of 2021. Most major high street shops have so far been able to stay open despite rising interest rates and high inflation, which have squeezed household spending.
Wilko employs about 4,000 people, and the company’s union said it was very worrying and that workers’ jobs should be guaranteed.
Chief Executive Mark Jackson said he wanted the company to be acquired. “We will continue to engage with all parties with the goal of reaching a deal that retains the company’s business,” he added.
Wilko has 400 stores across the UK with an annual turnover of about 1.2 billion pounds (about 1.5 billion U.S. dollars).
(Times Information Zhang Chaoqin)
further reading
Inflation + high interest rates British consumer confidence tends to be pessimistic in July
The price is too high, the livelihood is in trouble, and the British can’t live happily
The British central bank only raised interest rates by one yard, and the pound fell sharply
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