Wilko: 'Deep concern' in Worksop over store chain's future

Wilko, founded in Leicester and based in Worksop, has filed a "notice of intention" to appoint administrators

News that Wilko is on the verge of collapse has caused shockwaves on the British High Street. But what are the implications for the East Midlands, where the company was founded and is still based?

Founded by the Wilkinson family in Leicester 92 years ago, Wilko is the one of the best-known retailers in the country, with 400 stores across the UK.

The store giant said on Thursday it was planning to appoint administrators after failing to find sufficient emergency investment.

News that the chain is on the brink will be felt keenly across Britain, but no more so than in Worksop, the north Nottinghamshire town where it has its headquarters.

Some 12,000 jobs are at risk nationally - about 1,800 of which are understood to be based in the ex-mining town.

The company, still family-owned, is well-known for its affordable everyday items.

Its Worksop distribution centre opened in 1995.

'Bolt out of the blue'

Bassetlaw District Council's Labour leader James Naish said: "We are in active dialogue with the GMB trade union and have written to the chief executive of Wilko seeking an urgent meeting, while putting the council's teams on standby to help as required.

"The company has historically been at the epicentre of retail business in Bassetlaw.

"We support finding a buyer as quickly as possible to ensure that high streets - near and far - remain vibrant places to shop, work and socialise."

Colin Wyatt, a regional organiser for the GMB, said he had been talking at staff at the Worksop distribution centre just before the news broke, where there was optimism that the company "had turned a corner".

"When I was there in the morning there it was a positive attitude around members and our shop stewards on site," he told BBC Radio Nottingham.

"To get this news three hours later was really like a bolt out of the blue.

"It's really concerning - it's extremely concerning in fact - and we're hopeful that we can get a buyer."

Mr Wyatt said Wilko had struggled in the face of competition both in the high street and online, but said the fallout if it could not find a buyer would affect the wider retail sector.

"They've tried to move on [with the times], but I think they've probably gone in the wrong direction," he said.

"Wilko shops aren't small shops, they're big stores, and to have something that big empty on the high street is a disaster."

'Deeply concerning'

Brendan Clarke-Smith, Conservative MP for Bassetlaw, said the developments were "deeply concerning" but insisted he was doing all he could to protect local jobs.

He said he was arranging a meeting with Wilko to discuss the matter.

"Having been following developments for while, I am deeply concerned at the current situation at Wilko and will be working the best I can to make sure the situation is resolved and local jobs are protected," he said.

"I'd urge people not to be alarmist about the situation. This isn't something that has happened all of a sudden and the company have been having ongoing problems.

"I want to make sure Wilko still has a base in Worksop and we want them to stay here, continue employing people and to be successful."

About 1,800 employees are understood to work for the firm in Worksop

Wilko, which has dozens of stores across the East Midlands, did not confirm whether or not any jobs would be affected.

Labour district councillor Josie Potts, who represents the South East Worksop ward where the head office is based, said she stood on picket lines during the Miners' Strike in the 1980s in an effort to save workers' jobs.

She said she was now concerned for the hundreds of Wilko employees who found themselves facing an uncertain future.

"I was devastated when I saw the news - the first thing I thought about was people's jobs," said Mrs Potts, who lives a short drive from the Worksop site.

"It really saddens me because I've lived here all my life and so many people's jobs could be at risk.

"I know there's lots of people in my ward who work there and I've got family friends who work in the office - I worry for them.

"If Wilko is at the brink of collapse, how many more smaller hardware businesses could go, too?"

Brendan Clarke-Smith has urged "anyone affected by any of the current issues" to contact his office

The GMB union, which represents workers at the company, 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."

The announcement comes after Wilko revealed the sale of its Worksop distribution centre to logistics company DHL for £48m last year.

A total of 95 staff members in its contact centre in the town were also revealed to be at risk of redundancy in January as the company looked to outsource its customer service operations.

Other big employers in Worksop include B&Q, which also has a distribution base nearby, as well as Premier Foods.

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