THOUSANDS of employees are facing losing their jobs as High Street retailer Wilko faces up to the prospect of going into administration.
Wilko has several stores sited across Sussex but, despite desperate attempts to find new investment to keep the business afloat, it seems those efforts have failed.
If Wilko does go into administration, as is widely anticipated, it is likely to mean the closure of 400 stores across the country and the loss of 12,000 jobs in another huge blow to the economy.
The company, which is privately owned, sells items ranging from household items to stationary, filed its intention to appoint administrators at the High Court.
Many factors have contributed to its projected demise including the Cover pandemic, the cost of living crisis which is escalating by the day and the continued rise and dominance of online shopping.
The company started as a single hardware store back in 1930 before expanding rapidly in the ensuing decades to become a regular feature on the High Street.
By appointing administrator the company had a ten-day window to source new investment while also being protected from creditors during that time-frame.
Walk chief executive Mark Jackson said in a statement: “While we can confirm we have had a significant level of interest, at present we don’t have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we are facing.
“Unfortunately, with this in mind, we are having to take the difficult decision to file a notice of intention. We will continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties to move as fast as possible.
“We continue to believe our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Walk and maximise the significant opportunities that we know exist.”
The Wilko branches facing closure in Sussex are: Bognor Regis; Burgess Hill; Crawley; Eastbourne (which has two branches); Horsham and Worthing.
