Wilko has been facing significant product supply issues due to credit limits at suppliers.British budget retailer Wilko with a network of 400 stores said that it is on the verge of bankruptcy, the reduction threatens 12 thousand network employees.
The private budget company, which sells everything from stationery to hardware, filed a notice with the High Court in London of its intention to appoint administrators for external administration after weeks of unsuccessfully seeking a way out of the situation. The notice of intention to appoint administrators will give the firm a 10-day window to conclude a deal, protected from creditor action.
"We will continue to negotiate with interested parties to finalize a transaction that preserves the business and would encourage those stakeholders with whom we are negotiating to act as quickly as possible," said Wilko chief executive Mark Jackson.
Wilko has been facing significant product supply issues due to credit limits at suppliers. Earlier this year, the company announced plans to cut 400 jobs, including store and head office staff. The chain now employs about 12,000 people.
Tim Symes, an insolvency and asset recovery lawyer at British firm Stewarts, said it would be a "serious blow to an already ailing" British trade if Wilko collapses.
Wilko (formerly known as Wilkinson) is a British retailer specializing in home and garden products, pet care products, household products, toys and more. The company was founded in 1930 by Irving Williams and has since become one of the leading retail brands in the UK.