Scottish towns fear 'terrible loss' of Wilko stores

WilkoImage source, Getty Images
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Wilko has entered administration, putting 10 Scottish outlets at risk

Scots shoppers have said they fear for their towns' high streets after Wilko collapsed into administration.

The homeware retailer's 10 outlets in Scotland have remained open as emergency funding is sought.

Locals in Castle Douglas, Dumfries and Galloway, and Ayr, South Ayrshire, said the closures would be a major blow.

Wilko chief executive Mark Jackson said that management had "left no stone unturned" in its attempts to save the company.

Wilko outlets in Ayr, Castle Douglas, Clydebank, Edinburgh, Falkirk, Greenock, Hamilton, Irvine, Livingston and Motherwell are all under threat.

Castle Douglas optician Peter Tate said the shop's closure would be a "big loss" for the town.

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Optician Peter Tate said the store closing would be a blow for the community

"I think it'd be very disappointing, have impact on the community and a loss of jobs," he told BBC Scotland News.

Christine Low, who was in the town with her son Bryce, said it was a "really sad time" for the shop's staff.

"I don't know how many people work there but I've certainly got people I know that work there," she said.

"It's sad for people that could be losing their jobs and there's not a lot of jobs out there."

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Christine Low, pictured with her son Bryce, said it is a "really sad time" for the town

Colin Wilson, who runs the local Post Office, said it was a "shame" for Castle Douglas, especially after the recent closure of the town's M&Co store.

"Thankfully, a lot of the people have found jobs but we're all worried about the staff that's involved in Wilko," he said.

"In rural areas we all depend on each other and we all work together. And it's just another facility that's being lost."

Local councillor Pauline Drysdale said the community was "absolutely devastated" about the news.

"It's going to make a real impact on our town and obviously for people living nearby because the store itself is hugely important to our community, and the people who live within it," she told BBC Scotland News.

"So it's very upsetting for everybody concerned."

Wilko is not a big chain in Scotland with only 10 branches.

But in many of the towns where it has a branch, there will be a real worry over the company's future and what could happen if stores close.

One of the problems facing Wilko was that its branches were usually in traditional town centres, even though many customers had migrated to either out of town shopping centres or the internet.

But that also means Wilko is often a significant part of those town centres.

Some town centres have suffered badly from store closures in recent years. The loss of Wilko would make things worse.

There are questions over how to revive once bustling town and city centres.

The trend has been against traditional retail. That's why some councils and local partnerships are keen to explore options which accept that the demand for retail space will not return to its old level.

Instead, the question is how to ensure buildings can find other uses of social or economic value - perhaps housing, student accommodation or space for performances, exhibitions and small businesses.

Shoppers in Ayr, South Ayrshire, also expressed concerns about the chain store's financial troubles.

Caroline White, from Troon, said she was shocked when she found out the store could be closing.

"Everybody has known that store since we were all young," she told BBC Scotland News. "It was very upsetting when we all found out."

She added: "It was very popular at one time, you could get everything going cheap in there."

Alison Duncan said it would be a "terrible" loss for the area.

"I feel like if Wilko goes, that's the town empty," she said. "Nobody will come into Ayr at all."

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Wilko in Castle Douglas is among 10 Scottish stores under threat of closure

PwC has been appointed as administrator of Wilko, which has so far been unable to find enough emergency investment to save its 400 shops and 12,500 workers across the UK.

The stores will stay open for now, without any immediate job losses, and staff will continue to be paid.

PwC said it would continue to look for a buyer for all or part of the group.

Wilko boss Mr Jackson said management had "no choice" but but to put the firm into administration.

The GMB union said the collapse was "entirely avoidable".

National officer Nadine Houghton said: "GMB has been told time and time again how warnings were made that Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity."