Poundland-owner Pepco Group and B&M European Value Retail are in talks to acquire about 150 of Wilko's 400-strong store estate, Sky News learns.
In a statement pre-empting an announcement from PwC, the GMB Union said:"In a meeting with administrators today GMB Union was informed there is no longer any prospect that the majority of the business will be saved."This means redundancies for staff in store and at call centres will begin during the coming week.
Andy Prendergast, GMB national secretary, told Wilko's 12,500-strong workforce that it would"continue to support members through this process and will fight to ensure members are consulted as per the law and that you receive every penny you are entitled to". Reacting to the GMB statement, Jonathan Reynolds, Labour's shadow business secretary, said:"This is devastating news that will likely see stores close across the country. Their loss will have a massive impact on their high streets and my thoughts are with those Wilko staff and their families facing this dreadful news.
The family-owned chain, which was established by the Wilkinson family in 1930, had been working with PwC on a search for new investment for several months. In recent months, it had been seeking to finalise a company voluntary arrangement - a mechanism that would have triggered steep rent cuts at hundreds of stores but avoided any closures.
"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.
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