Wilko: On-the-brink retailer missed out on £40m in sale of flagship depot
Wilko’s sale of its flagship depot has returned to the spotlight as the deal appears to show how the business allegedly missed out on £40m amid a period when it was desperately trying to shore up cash.
Last November, the troubled high street store offloaded its 1.1m sq ft warehouse in Nottinghamshire for £48m to DHL, The Daily Mail reports, as the family-owned company attempted to improve its “long-term stability”.
However, just two months later the delivery giant shifted the property for £88m to private equity firm Brookfield Asset Management.
Gordon Brown, managing director for Wilko between 1992 to 2007, told the outlet that he was “surprised” about how cheap the warehouse went for.
“It cost £35m to build in 1994 and was expanded in the early 2000s ‘I would have thought it would be worth more,’ he said.
Another source described the move as a “fire sale”. “They needed cash badly,” they said.
All eyes remain on Wilko following its collapse into administration last week after it failed to find a buyer.
It has been speculated that rival value chains such as Home Bargains and B&M have been mulling a purchase of the retailer, offering a slither of hope for the 12, 000 jobs on the line.
While its administrators put a deadline of last Wednesday for final bids, no announcement has been made about whether or not a party has purchased the ailing company.
It is understood PwC is still assessing options for the retailer and its assets.
Speaking last Friday, Andy Prendergast, the national secretary for the GMB union that represents the shop workers said: “We can confirm there have been expressions of interest from organisations who are considering taking over at least some parts of the business.
“These are still at an early stage, but means there are genuine grounds for hope.
“Whilst this process continues staff will continue to be paid and kept on. All stores are continuing to trade, and deliveries of new stock will continue.”
City A.M has contacted Wilko and DHL.