29 August 2023 , 09:10
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Australian retailer Kmart could be set to capitalise off the back of the collapse of Wilko, with reports suggesting it wants to start selling its products in UK stores.
Kmart is understood to have expressed interest in stocking its Anko brand in UK supermarkets, according to The Telegraph, which claims discussions have been ongoing for the past few months. The retailer, which is owned by Wesfarmers, is reported to be looking to replace existing pet, toy or homeware lines.
However, talks are said to be in an early stage. Arjun Puri, chief executive of Anko Global, said: “We know from our conversations with retailers around the world that they are looking for solutions to their non-core categories.” The Mirror has contacted Wesfarmers for comment.
Wilko collapsed into administration earlier this month, putting the future of its 400 shops and 12,500 workers at risk. Administrators at PricewaterhouseCoopers (PwC) are now understood to be poring over rescue offers for the bust retailer.
Private equity firm M2 Capital this week told the BBC it has made a £90million bid for the business, and said it will keep all employees' jobs for two years. It was also reported last week that the owner of HMV, Canadian businessman Doug Putman, has been in discussions to save Wilko.
Wilko makes huge change to over 400 UK stores - and it's good for shoppers
Sky News reports that Mr Putman has approached debt providers including Gordon Brothers and Hilco to help finance a deal that could keep hundreds of stores open. However, sources told the news site over the weekend that a deal looked "unlikely".
Other retailers said to have put in an offer for Wilko include Poundland, which could snap up 100 stores, and B&M, which is said to be eyeing up between 40 and 50 stores. Other value retailers are reported to have expressed interest in acquiring about ten sites.
Rival firms can choose to only save part of a business once it has entered administration, and PwC previously said it expects some stores to close and jobs to be lost. Now the company is in administration, bidders would not be expected to take on liabilities, such as debts, as part of any deal.
Wilko CEO Mark Jackson said: ”Over the past six months Wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business. We left no stone unturned when it came to preserving this incredible business.”