Wilko: HMV rescue deal for majority of stores hits stumbling block as suppliers demand debt is repaid
The owner of HMV is hoping to strike a deal which could save the majority of stores and thousands of jobs.
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A Wilko rescue deal from the owner of HMV, which was thought to be nearing completion, has reportedly hit a stumbling block. The deal by Doug Putman’s HMV is under threat as big suppliers have demanded Wilko debt is repaid before supply lines are opened to the retailer.
Sources told national newspapers that the likes of Unilever and Procter & Gamble have also demanded upfront payment from Wilko to guarantee supply. Concerns were raised over the weekend that certain suppliers who had ceased shipping goods to Wilko stores might not be able to resume product shipments for another six weeks.
The news creates further uncertainty for the collapsed discount retailer’s 12,500 staff. Redundancies at Wilko’s distribution centre and head office began this week, while the majority of employees are still waiting for news on their future.
Putman’s potential rescue deal would save around 300 stores and approximately 8,000 jobs. It has been confirmed rival chain B&M has bought up to 51 Wilko stores in a deal worth £13m.