Its hard in hardware – Wilko on the brink

One of the UK’s biggest retail chains –  founded by an entrepreneur with one shop 93 years ago – is on the brink of collapse.

Discount hardware chain Wilko appointed administrators this week and 12,000 jobs are on the line if no buyer can be found.

Turnover of £1.2 billion.

Wilko operates 400 stores across the UK and turns over £1.2 billion. It competes with chains like B&M. 

You wouldn’t have thought there was a problem in the Worcester High Street branch of Wilko, this week, as many people headed through the sliding doors in search of screwdrivers, plugs and light bulbs.

Unions takes up cudgels.  

The union GMB – which represents 4,000 workers at Wilko – confirmed to the Matt Haycox Daily that it was taking up cudgels on behalf of its members.

“We know that Wilko is a great brand with a fantastic workforce and we remain hopeful that a buyer can be found.  Obviously, if that doesn’t happen we will be holding those responsible accountable, but we are remaining hopeful,” says Stuart Richards, a senior organiser for the GMB in the Midlands.

Interest rates to blame.    

The retailer could be one of the first major victims of the tougher economy and the 14 consecutive interest rate rises since December 2021.  

It is a world away from the optimism that drove entrepreneur JK Wilkinson and his wife Mary who opened up a hardware store in Charnwood Street, Leicester, in 1930. JK Wilkinson was to stay on the board of the company until the day he died, aged 91, in December 1997. 

Survived bombing raids.

The pair opened six shops by 1939 and survived the bombing raids and upheaval of World War Two.

In the lean post war years the rise of DIY and the handyman fixing up homes, on the cheap, saw Wilkinson stores thrive through the 1950s. 

As the decades wore on the family-run business started selling more than hardware and introduced its own brands. By the year 2000, it had 152 shops across the country. 

Expansion – then despair.

In 2010 the business rebranded to Wilko with grand plans. By 2018 it was expanding as far afield as Istanbul and Delhi. It was also building on line sales and by 2021 had two million visits per week. 

All of these achievements are mere memories for the Wilkinson family as they prepare to sell what’s left of the business in the hope they can find a buyer with enough capital and imagination to revive it.