Discount brand B&M is set to buy 51 Wilko stores after its rival fell into administration last month. PricewaterhouseCoopers (PwC), the appointed administrators for Wilko, has spent recent weeks searching for a buyer for the brand in a bid to save 400 stores and 12,500 jobs.
Today (September 5) B&M European Value Retail said it had agreed to purchase up to 51 stores in a deal reportedly worth £13 million. The B&M group runs around 1,150 stores in the UK and France under the B&M and Heron brands.
It is believed the 51 stores will rebrand as B&M shops, leaving around 350 Wilko stores stil at risk of closing permamently. PwC remains in further talks regarding Wilko’s remaining stores, brand and other assets.
Read more: Wilko's £1.90 'clearance bargains' confirmed as fake
It is understood that Doug Putman, who rescued HMV out of insolvency in 2019, is still in talks with administrators over a deal. It comes after reports on Monday that his original plans to buy around 300 stores were however impacted by difficulties related to Wilko’s debts to suppliers.
It is currently unknown where the saved stores will be located, but B&M said in a statement more information on the openings would be announced on November 9, in the H1 interim results. B&M said: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances.
“An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9.”
There are five open Wilko stores across Bristol city, with seven B&M branches - though neither are particularly near to each other, which may make Bristol a good location to save on the the branches. Jeremy Whiteson, restructuring and insolvency partner at Fladgate, said: “The sale of 51 stores to B&M offers a small glimmer of hope for the Wilko employees at the sites to be acquired.
“While reports so far have not confirmed the position of employees, if B&M wants to continue to operate a similar business from these sites, it is likely that contracts of employees engaged at those sites will be automatically transferred to the buyer as a matter of law.
“Unfortunately, the B&M deal is less likely to offer any benefit for employees based at other locations. Although, as other bidders are continuing discussions, it is possible that other sites are yet to be acquired.”
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Wilko stores in Bristol
- Kings Chase shopping centre
- Avon Meads shopping park
- Union Street
- Queens Road
- Bedminster
B&M stores
- Patchway
- Abbeywood Retail Park
- Shirehampton
- Channons Hill Retail Park
- Winterstoke Road
- Brislington
- Imperial Retail Park
