Wilko: Gordon Brothers mull rescue deal for troubled retailer as 12,000 jobs on the line
Troubled retailer Wilko could reportedly be rescued by global advisory and investment firm Gordon Brothers, which has a history of saving struggling brands.
Last week the family owned business made notice of its intention to appoint administrators, after it spent the summer hunting for a rescue deal.
Sky News reported this morning that Gordon Brothers has entered into talks with Wilko’s advisors about a possible deal.
However, insiders told the chances of Gordon Brothers reaching a deal to rescue the retail chain were “relatively low”.
One source also told the outlet that the firm was keen to partner with other financial investors to inject “about £20m of equity, while it would provide around £50m in debt financing”.
The Boston headquartered firm snapped up the brand and intellectual property of failing British homeware brand Laura Ashley from its administrators, PwC.
Laura Ashley now sells through retailers such as Next.
Wilko, like many other high street stores, has struggled in recent years due to a rise in online shopping along with a recent slowdown in consumer spending.
In January, Paperchase was wiped off the high street after being hammered hard during the pandemic. Its intellectual property was bought by Tesco and all stores were shut.
City A.M has contacted Wilko and Gordon Brothers for a comment.