Today is the deadline for struggling high street brand Wilko to find a retail company takeover offer. Dan Booth, CEO of Leonard Curtis, commented on why a buyer might make an approach.
“Location would certainly play a part,” said Dan.
“And it’s got a good brand name in the market – obviously been in the trade for nearly 100 years. They are a recognised player, established in multiple high streets across the country, with some decent footfall and a service that people still want.”
On why a deadline has to be imposed he added: “You can’t keep the process going on indefinitely as 12,000 people are currently waking up every morning with a great deal of uncertainty. So, you need someone involved to provide some certainty.
“The process is a bit like running a relay race. Directors have declared the business insolvent and passed responsibility onto an administrator and their primary objective is to pass the baton seamlessly on to a potential buyer who, you hope, will preserve as many stores and jobs as possible. We need a deadline to push that process through.”
Looking at how Wilko has failed as a business, he said: “There will be a number of reasons why it did not succeed and in the fullness of time there will be a good explanation for that.
“It’s no secret that the high street has had a difficult time. Debenhams, Monsoon, Go Outdoors, Harveys Furniture, Bensons for Beds, Victoria’s Secret – to name a few – have all found it tough with stiff competition.
“Rising inflation, cost of living and high interest rates have all contributed and customers have had to make a decision on purchases on a need to have rather than nice to have basis.”
Booth said that whether the brand remained would be a decision for the buyer.
“There is 93 years of heritage and history for Wilko – people relate to it and know what they are getting – and I am sure the founder James Wilkinson did not see this coming. It would be a shame for it not to continue.”
On the restructuring market in general Dan added that it was getting busier.
“People are finding it hard to trade through issues like cost of materials, employee wage demands and inflationary pressures,” he stated.
“It is a difficult time to be in business at the moment.”
