Wilko: Fears that retail chain could shut high street stores in ‘turnaround programme’ aimed at slashing costs

Wilko is understood to have been considering a company voluntary arrangement (CVA), according to the Daily Mirror. The discount giant currently has stores in Arundel Shopping Centre in the centre of Portsmouth, The Meridian Shopping Centre in Havant, Dukes Walk in Waterlooville, Market Quay Shopping Centre in West Street, Fareham, and across Hampshire.

A CVA allows a business to restructure but continue trading as normal. This means that shops could be closed and rent will be negotiated to keep costs down in some situations.

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CEO Mark Jackson made a statement yesterday about a new ‘turnaround programme’. There is no direct mention of stores shutting in the statement, but the CEO said Wilko is currently going through the phase of stabilising the business.

He said: ‘We announced the start of our turnaround programme to drive Wilko forward in January, complete with a new streamlined senior team and a strategic plan to first stabilise the business and then implement a growth strategy.

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‘We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.’ Mr Jackson added that he is ‘confident with the right actions’ that Wilko will continue to be a ‘key feature’ on the high street.

As reported by Bloomberg, the chain has approached PricewaterhouseCoopers (PwC) to explore various restructuring options. Cost-cutting measures have been implemented since the beginning of the year – with 400 jobs being cut.