Wilko could be sold to save family business as high street continues to struggle

21 July 2023 , 16:27

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Wilko could reportedly be sold (Image: In Pictures via Getty Images)

Wilko's owners may be considering selling the business due to high street struggles caused by a lower number of shoppers, it has been reported.

The family that owns the value retail giant, which employs about 12,000 people and has 400 stores around the UK, is said to have approached general merchandise chains about recapitalising the business.

The chain is reportedly looking to raise tens of millions of pounds in new funding, Sky News reports.

Wilko chief executive Mark Jackson said the company is open about the fact it is "exploring all the options available to rebound as a business" and "welcoming new approaches to recapitalise the business".

In a statement, Mr Jackson said: "We've been very open that we're exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist. We have a clear and defined turnaround plan put together by a refreshed and experienced management team to re-establish a profitable Wilko that delivers significant return, accelerated by the investment needed.

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"We are actively out across the UK and international markets continuing external conversations and welcoming new approaches to recapitalise the business through a combination of refinancing options of debt and equity release to provide a stable platform to activate the next phase of the recovery."

Wilko was founded in 1930 by James Kensey Wilkinson when he opened his first store in Leicester. By the end of the 1930s, the company had six shops and during the Second World War, it remained opened, helping people keep their shelters and cellars well stocked.

In 1958, the company's biggest shop was opened in Charles Street, Leicester, and years later the first self-service hardware shop was opened. In the 1970s, the company started developing its own product ranges starting with paint and gardening products.

As Wilko's expansion continued, it started focusing on products people can easily carry home such as cleaning products and pet food. By the end of the 1990s, Wilko had opened 152 shops across the UK, which continued to grow at the beginning of the 21st century.

During the pandemic, Wilko launched its plastic-free wipes and by 2021 its website had two million visits per week.

Chiara Fiorillo