As the news filtered down to the shop floor a busking violinist played a wistful, almost mournful, tune on the doorstep of one of the 400 Wilko stores facing closure. A lament for the end of a business dream.
It set the tone for the day. Wilko, the high street DIY household name, has collapsed into administration threatening 12,000 jobs across the UK.
This effectively brought to an end weeks of well-meaning talks to find a buyer. Wilko said it had interested parties, but could not seal a deal before the deadline.
Administrators Called In
Administrators from PriceWaterhouseCoopers are to be appointed this afternoon. They hope to sell off at least part of Wilko as a going concern, but it is almost inevitable that a number of stores will close sooner, rather than later.
Before the administrators moved into their offices the recriminations began – led by GMB, the union that represents about a third of the Wilko workforce. It weighed in with an attack on the management.
“The 12,000 Wilko workers now facing potential redundancy will take little solace that with better management the situation that has befallen Wilko was, sadly, entirely avoidable.GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity,” says Nadine Houghton, the national officer for GMB.
“Much needed cash was taken out of the business by the Wilkinson family even when it was struggling. GMB members have remained loyal and committed to Wilko, accepting pay cuts and cuts to terms and conditions to help the business stay afloat, yet, as late as last year £3m was taken from the business.
“All the while the technology to improve the Wilko home shopping offer was neglected, their place in the market lost and now 12,000 jobs are on the line.”
Mark Jackson, the chief executive of Wilko , said: “We left no stone unturned when it came to preserving this incredible business but must concede that, with regret, we’ve no choice but to take the difficult decision to enter into administration.
“We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.”
A sad end to an entrepreneur story that began in 1930. JK Wilkinson and his wife Mary 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.
The business may have survived bombing raids, but it couldn’t survive the strange world of the UK high street shopping business in the 21st century.
