Biggest high street losses as Wilko on brink – from Woolworths to Blockbuster
Wilko is on the brink of collapse after the home and hardware retailer announced plans to appoint administrators this week.
The boss of the high street chain said the business is struggling with "mounting cash pressures" after failing to find emergency investment. Wilko, which employs 12,000 workers and has around 400 shops, filed a notice of intention to appoint administrators at the High Court on Thursday.
It had been reported last month that Wilko was exploring a sale of the business, as well as considering a company voluntary arrangement (CVA) to slash rents at stores. Wilko has already borrowed £40million from Hilco UK, specialist retail investor and lender which owns Homebase.
Like many high street retailers, it has been hit by higher inflation and supply chain challenges. If Wilko was to enter administration, it does not necessarily mean the end of the business or that its stores will definitely disappear.
When a company goes into administration it means it has become insolvent and will be run by an appointed administrator, who will look at options to save the business. But sadly, more than 17,000 shops shut in 2022 in the worst year for retail in five years.
High street loses fashion retailer M&Co with almost 200 stores set to close
Here are some of the biggest high street names that have disappeared in recent years.
Woolworths
Everyone knew where their nearest Woolworths was (Getty Images)Woolworths was the heart of many high streets, selling almost everything including toys, gardening, homeware and music - and was of course famous for its pick and mix sweets.
But the company sadly collapsed into administration in 2008, leaving 27,000 out of a job, and 815 stores looking for a new owner. The business was laden with £385million of debt at the time of its demise.
Debenhams
Debenhams spent 242 on our high streets (Getty Images)Debenhams entered administration twice throughout its 242 years on the high street, collapsing for the final time in 2020. Boohoo went on to buy the Debenhams website and brand in January 2021 - but this deal didn’t include its 118 remaining stores and put 12,000 jobs at risk.
The last of its high street stores shut that year, having temporarily reopened following the coronavirus pandemic to hold closing down sales. The collapse came after Debenhams' sales plunged to £323million versus billions in its heyday.
Blockbuster
Blockbuster struggled to survive under the rise of streaming services (Stefan Rousseau/PA)Blockbuster collapsed for the second time in 2013 after the DVD and games rental chain struggled to keep up with the success of home streaming services. Before its troubles began, the firm had 528 stores and employed 4,190 staff.
Blockbuster was reported to have owed £139million to creditors and suppliers at the time of its first administration.
Arcadia Group
Topshop was the biggest name under the Sir Philip Green retail empire (Getty Images)Arcadia Group was the retail empire owned by Sir Philip Green and included brands such as Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge and Evans. It fell into the hands of administrators in 2020, under the weight of a £750million debt pile.
The failed brands were broken up, with ASOS going on to purchase Topshop, Miss Selfridge and the activewear brand HIIT in a £330million deal, while Boohoo snapped up Burton, Wallis and Dorothy Perkins for £25million - but neither agreements included physical stores. At the time of falling into administration, Arcadia Group owned 444 stores in the UK and 22 shops internationally, employing around 13,000 workers.
BHS
BHS sparked a huge inquiry into a massive pensions black hole (MDM)BHS - another brand previously owed by Sir Philip Green and once of the most famous brands on the street - went into administration in April 2016. It collapse come just over a year after he offloaded the struggling chain to a consortium led by former bankrupt businessman Dominic Chappell for a token £1.
All the shops, pubs and banks closing this year from Paperchase to Wetherspoon
The loss of BHS led to 160 stores disappearing forever and 11,000 jobs being axed. It later emerged the business had a £571million pensions black hole affecting around 19,000 pension holders. Sir Philip later agreed a deal with regulators to hand over £363million to cover most of the BHS pension scheme.
Comet
Comet was famous for its electrical goods (FlickrVision)Comet went bust in 2012 after being hit hard by the recession. The electrical goods giant was owned by private equity firm OpCapita, which had bought Comet the year before its collapse for the nominal sum of £2.
The struggling company employed 6,500 staff across 240 stores.
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