Wilko in ‘early stages’ of big ‘turnaround’ which could see stores shut to save the business

Wilko is understood to be in the “early stages of a turnaround” with its directors exploring “all options” for its “long-term future” amid fears it may have to close some sites.

The store, which is one of Britain’s most favourite discount chains, is reportedly considering a company voluntary arrangement (CVA) which is a form of insolvency.

It gives a business a way to restructure whilst still trading, and could mean some shops will shut and rents be negotiated in order to save money and keep costs down.

The firm’s CEO Mark Jackson did not confirm any stores would be shutting but said it is spearheading a “turnaround programme” to “stabilise 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.

“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.”

He added: “We’re confident with the right actions, we’ll continue to be a key feature on the British high street and expand our omnichannel offer, providing customers a place to shop for all their household and garden needs.”

The comments come after Bloomberg reported the chain is looking at restructuring options and has recently approached financial advisors PricewaterhouseCoopers.

Wilko announced plans to close more than a dozen of its shops in January last year and revealed it would be cutting 400 jobs this year, as well as closing children’s toy departments.

According to the government website, a CVA can be used if a limited company is insolvent to pay creditors over a fixed period. If creditors agree, the limited company can continue trading.

High street stores including Mother Care, Clintons and Caffe Nero have launched CVAs in recent years to keep their business afloat and closed some stores.