Wilko: Redundancies suspended while rescue bids considered

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Wilko: Redundancies suspended while rescue bids considered
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The GMB union says the retailer and its 12,500 workforce 'are not out of the woods yet'.

Redundancies at collapsed retail chain Wilko have been suspended while rescue bids for the business are considered.

About 400 shops across the UK are also at risk of closure. Wilko also operates a head office and two distribution centres. Wilko had been struggling with a cash shortage and a failure to keep up with rivals such as B&M and Poundland as the soaring cost of living has pushed shoppers to seek out bargains.

The government would "continue to stand firmly behind business", having provided support with VAT cuts and business rates holidays in recent years, the spokesperson added.The GMB union also said it was concerned by the influence of Hilco, a restructuring specialist which had already lent Wilko £40m as it was struggling.

Shoppers had noticed gaps on shelves after Wilko struggled to pay suppliers and at least one credit insurer withdrew trade cover, prompting some companies to pause deliveries.

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