Wilko - Case Update

Wilko’s suppliers can expect to receive a total dividend in the range of 4-13% of their total claims, according to joint administrators Jane Steer, Zelf Hussain and Edward Williams of PwC.

The company entered into administration in August after struggling over the past decade in part due to growing competition from rivals offering similar goods at lower prices. The joint administrators immediately focused their efforts on securing a potential transaction, engaging with over 180 interested parties, resulting in 60 NDAs being signed and 12 non-binding offers being received. No deliverable offers were for the company as a going concern, and a decision was taken to proceed with various asset sales to conclude the winding down process. Transactions completed with B&M, Pepco and The Range Group.

In order to continue trading whilst the sales completed, the joint administrators entered into a funding facility with HUK 117 Limited, an existing secured creditor and subsidiary company of Hilco Capital, which enabled the payment of wages and essential service providers critical to continued trading, together with the immediate purchase of stock.

Barclays has been repaid in full, having exercised its right of set off on appointment, and HUK will likely also be repaid in full shortly. Unsecured creditors including suppliers and wholesalers will likely receive about 4-13% of their total claims, meaning that they will lose out on a collective total of over £250 million.

The administrators have been assisted by Shoosmiths, Pinsents and Gatehouse Chambers (legal) and CBRE, Metis Partners and Naismiths (agents). Their progress report can be found HERE.