Wilko looks set to close after last minute bid to save chain is rejected

Union leaders in the UK are urging priority for Wilko's 12,500 employees after a deal that could have rescued the ailing budget chain was rejected.

The rejection came as debt holders could potentially recover more through the liquidation of the business. Canadian entrepreneur Doug Putman, known for rescuing HMV in 2019, had been attempting to take over at least 200 of Wilko's 400 outlets and continue their operations under the Wilko brand, saving jobs and supporting suppliers.

However, Putman's offer couldn't match the cash raised from liquidating the chain's assets, including leaseholds and stock. The main creditor for Wilko is restructuring specialist Hilco, which loaned the company £40 million shortly before it went bankrupt.

Andy Prendergast, the national secretary of the GMB union, emphasised that the livelihoods of working people should be prioritised over the interests of the wealthy. Administrators from PwC, appointed to oversee Wilko's affairs, have set a deadline for final offers. It's possible Putman could return with an improved bid, but sources suggest his previous proposals weren't considered credible. Store closures and layoffs are expected to commence in the near future as a buyer for the entire group hasn't been secured.