ICSM Business News: D-Day for Wilko as creditors and lenders wait to hear if the retailer will be bought or liquidated - and if they will be paid the millions owed

By Harry Mottram: It’s decision day for high street retailer Wilko as the administrators wait to see if Canadian businessman Doug Putman, known for reviving music and games retailer HMV will step in with a bid for the business. The BBC are reporting that his offer is unlikely to meet legal requirements which suggests the chain will be liquidated allowing all the assets to be sold off and the creditors to receive some of the cash they are owed.

If that happens then there will be 400 prime town centre stores up for grabs – although many may remain empty joining those of Debenhams and BHS – plus there will be 12,000 staff seeking a job and hoping they receive their rightful redundancy payments. Ian Carrotte of ICSM said it was  tragedy that the retailer had gone bust as it would leave a hole in the British retailing sector.

He said: “The main concern for the hundreds of suppliers is will they be paid. Liquidation of the firm would give them a chance of something in the pound once the secured creditors are paid. If only part of the firm is bought in a pre-pack then they may not get anything with the debts wiped. Today is the day that Wilko’s fate is revealed.”

Administrators PwC have been tasked with finding a buyer, but potential bidders have not come forward as they would be taking on an ailing business loaded with debt and in a declining sector. For the moment the stores remain open while they stage a fire sale with up to 30% off everything.

PwC said in a statement: "As administrators we're intent on achieving the best outcome for everyone involved while preserving as many jobs as possible and adhering to our statutory duty to act in the best interests of the creditors as a whole. It would be inappropriate to comment on individual bidders or interested parties at this stage in the process."

The retailer sells anything from Barbie dolls and toys to kitchen cleaning products, pet animals like rabbits to paint, wallpaper and tools. When Woolworths went bust they filled the vacuum left by the retail giant but in recent times firms like B&M have moved in on their territory increasing competition in the budget end of the market. As a stockist of such a wide range of goods their supplier list is vast with hundreds of brands including Dulux, Lenor and Andrex. Now the suppliers must wait to find out if their invoices will be paid in part or full – or not at all.

++++++++++++++++++++++++++++++++

ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk