25 August 2023 , 06:16
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The owner of HMV is said to have extended a last-ditch rescue effort to save some Wilko stores.
Canadian businessman Doug Putman bought up HMV when it was in administration in 2019 and is credited with turning its fortunes around. Mr Putman, whose family also owns Toys R Us in Canada, is now said to have tabled talks with Wilko administrators at PwC.
Reports suggest he has expressed interest in acquiring half of the retailer's 400 shops, and saving around 3,000 to 4,000 of its 12,500 workers. It is reported that no formal bid has been tabled yet, and around ten other parties have expressed some level of interest in acquiring some of the stores.
The Times first reported the news, but added that Mark Jackson, Wilko chief executive, told staff that Mr Putman’s takeover was unlikely. A source told the outlet: “It’s just frustrating because there’s 12,000 of us who are now going to lose our jobs.” In the event of any takeover, he is reported to want to continue to run the stores under the Wilko brand.
Mr Putman, who owns Canadian retailer Sunrise Records, turned HMV around by changing the company’s focus from CDs and DVDs to vinyl and merchandise. Sales at Sunshine Records and Entertainment, which also owns smaller chain Fopp, jumped from £90million to £150million in the 12 months to May 2022. HMV is now set to return to the former site of its Oxford Street flagship store this year, four years after shutting up shop. Representatives for Mr Putman have been approached for comment.
Wilko makes huge change to over 400 UK stores - and it's good for shoppers
Rival discount retailers B&M and Poundland are also said to have expressed interest in snapping up some Wilko stores. However, PwC warned this week that it was very likely jobs would be lost and not all stores would be saved. The administrators said "it’s clear that the nature of this interest is not focused on the whole group" and it was "therefore likely that there will be redundancies and store closures in the future". An announcement is expected soon.
The family-owned Wilko was started by James Kemsey Wilkinson as a single shop in Leicester back in 1930. From there, it grew into one of Britain’s biggest company and a high street staple. But the discount chain struggled in recent years with supply issues during the pandemic and the long term issues facing the country’s high streets.