Uncertain future for Falkirk store as Wilko at risk of collapse

The privately-owned company said it had filed a "notice of intention" to appoint administrators after failing to find enough investment.

Wilko employs around 12,000 people across 400 UK stores – including one in Falkirk’s High Street – and is well-known for its value furnishings and accessories.

Chief executive Mark Jackson said it would continue to talk with interested parties about options for the business.

The Falkirk store opened in 2007 in the premises once occupied by Woolworths before it ceased trading.

However, in recent weeks customers have noticed lots of empty shelves and far more space on the shop floor as Wilko has struggled to pay its suppliers.

Founded in 1930 when JK Wilkinson opened his first store in Leicester, it was called Wilkinson Cash Stores and by 1939 a total of nine stores had opened.

It expanded across the Midlands initially and by the 1990s became one of Britain's fastest-growing retailers.

In 2012, Wilkinson began rebranding its stores as Wilko, after its own-brand products marketed under the Wilko name. By 2014, most stores had emblazoned the new name on storefronts, including the Falkirk store which has entrances on the High Street and into the Howgate Shopping Centre.

Last year it borrowed £40 million from the restructuring specialist Hilco, cut jobs, rejigged its leadership team and sold off a distribution centre as it faced a cash squeeze after falling to a loss.

Mark Jackson, the chief executive of Wilko, said: “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.

“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a (notice of intention to appoint administrators).”

Mr Jackson said the business would continue to hold discussions with interested parties and would aim to secure its future “as fast as possible”.

Andy Prendergast, the national secretary for the GMB union, which represents some Wilko workers, said: “This is extremely concerning but we remain hopeful that a buyer can be found. Wilko’s staff deserve reassurance that their jobs are safe. We hope this is the number one priority going forward.”