Bidders interested in rescuing the beleaguered retail chain Wilko have been presented with a Wednesday deadline to submit offers that could potentially save the company from closure.

The iconic high street retailer recently found itself in dire straits, plunging into administration last week, a move that placed the fate of its 400 stores and 12,500 employees in jeopardy.

Administrators from PwC are reportedly moving swiftly to secure a deal that could salvage jobs, setting the Wednesday deadline for potential bidders. Wilko continues to operate its business as usual and has not announced any layoffs since its formal entry into insolvency.

Mark Jackson, the company’s CEO, expressed that despite a “significant level of interest,” the decision to enter administration was inevitable due to the inability to close a solvent sale.

It is worth noting that, under the administration process, bidders are not typically expected to shoulder the entirety of the company’s liabilities, including hefty debts.

Wilko had engaged in discussions with private equity firms Gordon Brothers, owner of Laura Ashley, and Alteri, which possesses Bensons for Beds. These conversations aimed to secure funding that could keep the retailer afloat, though they ultimately culminated in Wilko entering administration.

At present, it remains uncertain whether either of these private equity firms will partake in the latest process that seeks to purchase the Wilko brand, stores, or other assets.

PwC has not provided official commentary on the matter.

The Fate of Wilko Stores

PwC administrators Jane Steer, Zelf Hussain, and Edward Williams have been entrusted with overseeing the administration process for Wilko.

PwC has revealed that, for the time being, all Wilko stores will continue operations without immediate layoffs, as conversations with interested parties continue. However, the firm cautioned that without a buyer stepping forward for some or all of the group, store closures and redundancies are likely to follow.

Joint administrator Mr. Hussain conveyed that it is truly disheartening to witness a beloved family business that has graced the high street for over 90 years facing administration. He acknowledged the unsettling impact this development has on Wilko’s team members, communities, and stakeholders.

He reassured that stores will continue to function normally, and employees will continue to receive their wages.

With 408 stores across the UK (at the time of publication), all Wilko locations stand to be at risk of closure if a buyer does not emerge. These stores are situated in various cities including London, Birmingham, Leeds, and Leicester.

If the worst-case scenario unfolds, with no buyer found, over 12,500 jobs could be adversely affected. The deadline set for potential bidders underscores the urgency of the situation, as stakeholders and employees wait with bated breath for news on the future of this historic high street retailer.