Wilko files notice of intention 

Homewares chain Wilko has warned it could appoint administrators as it faces running out of cash.

The company has filed a notice of intention, which gives it 10 days protection from creditors. PricewaterhouseCoopers has been trying to find a buyer in recent months.

The chain is chaired by former Bensons for Beds chair Chris Howell and former Bensons executive, Mark Jackson became chief executive in December.

It borrowed £40m from Hilco after warning of cashflow issues.

‘While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with,’ says Jackson.

‘Unfortunately, with this in mind, today we’re having to take the difficult decision to file. We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.

He added that talks with potential buyers were ongoing.

Wilko22AW

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