Droylsden’s wilko store to close after rescue deal collapses

ONE OF Droylsden’s largest stores will soon stand empty after troubled chain wilko announced it is set to close following the collapse of a rescue deal.

Doors will shut for the final time at the unit on Sunday, September 17 after it was included in the latest batch of closures.

Eventually, all 400 branches look set to disappear from the high street by the beginning of October, including those in Denton and Ashton-under-Lyne.

However, Droylsden – situated on the Droylsden Shopping Centre, on Greenside Lane – will be the first of Tameside’s stores to go.

A deal with HMV owner Doug Putman, that would have seen the majority of Wilko stores saved, collapsed, placing 12,500 jobs nationally at risk.

Some may be saved as The Range, Poundland and B and M Bargains are in talks to buy some stores, and Denton and Ashton are nit yet included on any closure list.

Putman said: “It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.

“We had financing in place and received the full support of PwC, Wilko management and staff representatives, which we are deeply thankful for considering what a challenging time it has been for them.

“However, commitment to overhauling the trading framework of the business with partners and the costs of running Wilko’s legacy operations infrastructure combined has meant that a stable foundation could not be secured to ensure long-term success for the business and its people in the way that we would have wanted.”

In a statement, PwC said: “Since their appointment on August 10, the joint administrators have explored all potential opportunities to save the business.

“They have worked closely with wilko, its employees and suppliers, to fully understand the structure, implications and viability of a number of offers received for all or parts of the group.

“However, despite extensive efforts, it has become clear that no significant part of the wilko operations can be rescued as a going concern.

“As a result, the joint administrators have informed all staff they will sadly commence the closure of all wilko stores, the two distribution centres and the cessation of the majority of activities of the support centre.”

Joint administrator Zelf Hussain added: “Despite the significant and intensive efforts of both ourselves and Putman Investments – the remaining party interested in buying a significant part of the business as a going concern – a transaction could not be progressed due to the inability to reduce central infrastructure costs quickly enough to make a deal commercially viable.

“The dedication shown by all team members during this period has been hugely humbling and we are grateful for the patience and understanding they have shown.

“As with those who have already been given notice of redundancy, we will guide and support those team members impacted over the coming weeks through the redundancy claims process.

“We also continue to collaborate closely with relevant agencies and engage with any potential employers to help facilitate a quick return into new employment for those impacted.

“We continue to work with potential buyers for different parts of the business and are confident of completing transactions in the coming days.”