skip to main content
  • *
  • *
  • *
Find Insight DIY on
* * *


B&M Buys 51 Wilko Stores

Wilko Store

According to BBC News, B&M Bargains has agreed to buy dozens of shops from the collapsed retailer Wilko, as talks over a bigger rescue deal hang in the balance. B&M has confirmed it will take up to 51 of Wilko's 400 stores in a deal worth £13m. 

Wilko fell into administration in August as it struggled with sharp losses and a cash shortage. 

It is understood that a deal tabled by HMV's owner has stalled over issues with suppliers and funding.

Wilko was founded in 1930 and by the 1990s became one of Britain's fastest-growing retailers.

But the discount chain has faced strong competition from rivals including B&M, Poundland and Home Bargains, as the high cost of living has pushed shoppers to seek out bargains.

Wilko's stores remain open for now as it seeks a buyer for a bigger chunk of the estate, but more than 12,500 jobs were put at risk by the collapse. 

The first redundancies - 269 jobs at Wilko's support centre in Worksop and 14 others at a subsidiary firm - started on Monday.

B&M has not confirmed which Wilko shops it has bought, or how many posts could be saved as a result of the deal.

The money raised by the sale will help recover funds for Wilko's creditors, as administrators PwC oversee the running of the business with all of its associated costs such as employee wages. 

Retail expert Catherine Shuttleworth said the deal would also allow B&M to attract more customers. The chain has stepped up its expansion plans in the wake of the pandemic, opening 21 new stores in the last financial year.

"This may also create local jobs for Wilko colleagues in the newly-owned stores," Ms Shuttleworth said.

B&M - which was originally called Billington & Mayman after its founders Malcolm Billington and Brian Mayman - opened its first store in Blackpool in 1978, before expanding throughout the UK.

It took on a number of shops from the likes of Woolworths and is now registered in Luxembourg, with shops in France.

Several other retailers and investors have reportedly been in talks with PwC about potentially buying Wilko's shops or online brand.

At the end of last week, Canadian billionaire Doug Putman was thought to be edging closer to a deal to buy up to 300 shops. In 2019, his company Sunrise Records bought the collapsed music chain HMV and saved some 1,500 jobs and about 100 stores.

That takeover resulted in redundancies and shop closures, including the company's flagship Oxford Street store in London - but following a major turnaround, plans are in place to reopen it later this year.

Mr Putman's plan to buy Wilko is still "live", a source familiar with the situation told the BBC, but the businessman is apparently struggling to nail down final funding for the deal.

Source: BBC News

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.

06 September 2023

Related News

view more UK DIY News

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

Paul Boyce - European CEO, QEP Ltd.

Don't miss out on all the latest, breaking news from the DIY industry