The rise and fall of Wilko: Administration blow today brings end to tiny family-run hardware store that became High Street stalwart
- The first shop was opened by JK and Mary Wilkinson in Leicester back in 1930
- But the beloved high street chain has now been plunged into administration
The collapse of Wilko this morning marked the final chapter of another one of Britain’s best-loved chains after almost a century.
From a hardware store on a tiny street in Leicester to having more than 400 stores in the UK, Wilko has served the needs of Brits up and down the country since 1930.
But after weeks of shoppers being greeted with half empty shelves, Wilko was finally plunged into administration this morning despite chief executive Mark Jackson insisting ‘we left no stone unturned’ in an emotional letter to shoppers and staff.
Wilko, the latest high street chain to fall victim to the pandemic and resulting cost-of-living crisis, has now appointed PwC to see if any buyers can swoop in and save the 12,000 jobs and 400 stores at risk.
First launched as Wilkinson’s, the family-run business started as a single hardware store on 151 Charnwood Street in Leicester some 93 years ago.
For decades, Wilko stores have been dotted around town centres, offering Brits stationery, gardening supplies, homeware, cleaning products, or simply a tasty pot of pick-and-mix.
The first shop – known as ‘Old Charney’ – was opened by JK Wilkinson and then Mary Cooper, who were engaged to be married at the time.
First launched as Wilkinson’s, the family-run business started as a single hardware store 151 Charnwood Street (pictured) in Leicester some 93 years ago
Shoppers at Wilko have been met with empty shelves in recent weeks – and that continues today (pictured in Tottenham Hale)
PwC has been called in to save the beloved high street store after it went under this morning. Pictured: Wilko, Tottenham Hale
Wilko announced that it had gone into administration this morning, telling shoppers: ‘It’s been an honour’
Reportedly, the pair got married at 8am on October 22, 1934, at St Peter’s Church in Highfields – and were back at the shop by 11am, such was their commitment.
READ MORE: Wilko plunges into administration putting 12,000 jobs and 400 stores at risk in hammer blow for High Street
Since the couple opened the first shop, the business had always remained in the Wilkinson family – until this morning.
Just before 10.30am, Wilko’s boss Mr Jackson announced the devastating news that Wilko’s struggles had become so severe, they had been forced to call in administrators, taking the high street giant out of the family’s hands for the first time.
The beloved chain has been plagued with financial turmoil and said it had ‘no choice’ but to file for insolvency. It is the largest retailer to go bust since newsagents chain McColl’s closed more than 130 stores last year.
Nadine Houghton, national officer at the GMB union, blamed the Wilkinson family for taking millions of pounds out of the business all while staff were ‘accepting pay cuts and cuts to terms and conditions to help the business stay afloat.’
She also hit out at the Wilko management for having ‘simply failed to grasp this opportunity’ to appeal to consumers looking for bargains during a cost-of-living crisis.
Devastated shoppers and workers will now be hoping that the chain, steeped in history, can be bailed out by a new buyer.
JK Wilkinson (pictured) opened the first shop with his fiance Mary Cooper. Reportedly, the pair got married at 8am on October 22, 1934 at St Peter’s Church in Highfields – and were back at the shop by 11am
Since the couple opened the first shop, the business had remained in the Wilkinson family until this morning
Wilko, known then as Wilkinson’s, started as a single hardware store 151 Charnwood Street in Leicester in 1930
Within six years of the business launching in the 1930s, Wilko had six stores, including two they had gained from JK’s brother, Donald Wilkinson, who had also opened two hardware stores in Birmingham.
Donald was brought into the company as a Director, up until he died in 1997.
By 1940, the Wilkinson started to use motorised transport, a Jowett van, for customer deliveries.
Most stores managed to stay open during the Second World War to keep residents’ air raid shelters and converted cellars well stocked.
Three shops in Leicester had to close following the first air raid in the city, but they were all re-opened by the time the war ended in 1945.
More decorating products were introduced to the stores in the 1950s in line with the rise of the ‘handyman’ and more people giving DIY a go to improve their homes.
The new DIY products were proven to be a ‘huge hit’ with customers and this encouraged the company to continue to diversify.
Tony Wilkinson (pictured) is the son of JK and Mary who opened the first Wilkinson shop in 1930. He joined the family business as a branch manager at the store on Charles Street and then become chairman in 1972 and remained for 33 years
The budget-chain is a staple for Britain’s shoppers who are after stationery, gardening supplies, homeware, cleaning products, or just a pot of pick-and-mix
By 1940, the Wilkinson’s started to use motorised transport, a Jowett van, for customer deliveries
Most stores managed to stay open during the Second World War to keep residents’ air raid shelters and converted cellars well stocked. Three shops in Leicester had to close following the first air raid in the city, but they were all re-opened by the time the war ended in 1945
Pictured: Staff stood outside one of the Wilko, known then as Wilkinson, stores in the 1950s
During the 80s the brand continues to grow with shops popping up across the UK and external suppliers are brought in to help deliver its products
Pictured: Customers queuing up to buy budget-friendly goods at Wilkinson, believed to be in the 90s
Wilkinson’s biggest shop to date was opened on Charles Street, Leicester in 1958. The budget-brand has remained on our high streets, whilst other companies such as BM and Home Bargains have moved to retail parks. Some critics say this could have contributed to the businesses difficulties.
READ MORE: Wilko heads towards administration: Why is the UK brand on the brink of collapse?
In 1960, JK and Mary’s son, Tony Wilkinson, joined the family business as a branch manager at the store on Charles Street. He then became the company’s first ‘Personnel Manager’ and later took on a role as chairman in 1972 where he remained for 33 years.
The 60s also saw the company open Britain’s first ever ‘self-service’ hardware shop.
In the next decade the company started to develop its own product ranges for the first time, launching its first product – a pot of paint – in 1973.
It also established itself as a ‘home and garden’ retailer – long before the emergence of garden centres – moving away from the traditional hardware shops.
During the 80s the brand continued to grow with shops popping up across the UK and external suppliers are brought in to help deliver its products.
After a ‘major review’, the company decided to stop selling bulky items such as lawnmowers and greenhouses and instead focused on what customers often buy – such as cleaning products and pet food.
This was another step in the former hardware store establishing itself as a shop as it moved to sell things customers ‘could fit in a bag’.
By the end of the 90s there were 152 shops and by 2008 there was even a Wilko Asia as the empire grew
In 2013, Wilkinson became Wilko and the company launched its new strapline, ‘where there’s a Wilko, there’s a way’
The family business was plunged into administration on Thursday morning with around 12,000 jobs at risk
In 1995 the Manton wood warehouse, which was mostly built on old colliery land, was opened by JK and Mary.
By the end of the 90s there were 152 shops and by 2008 there was even a Wilko Asia.
But returning to the early 2000s, in 2005 Wilkinson Plus – the online shopping platform – was launched.
In 2010 the re-brand programme of Wilkinson becoming Wilko – the name used on it’s own-brad products – began. The company launched its new strapline, ‘where there’s a Wilko, there’s a way’. It expanded in 2018 with shops opening in Delhi and Istanbul.
Wilko reported strong profits for most of the 2010s and saw its turnover peak at more than £1.6 billion in 2018, but by this point had seen profitability begin to decline amid pressure on local high streets.
Turnover has decreased in every year since as it saw challenges in the sector compounded by the Covid-19 pandemic and tighter consumer budgets in the face of higher energy costs and mortgage rates.
Administrators for the company at PwC said these factors contributed to ‘cashflow pressure and a deterioration in trading’.
But today, some 12,000 jobs at Wilko are at risk of being axed after it emerged the discount retail giant had collapsed.
Wilko reported strong profits for most of the 2010s and saw its turnover peak at more than £1.6 billion in 2018, but by this point had seen profitability begin to decline amid pressure on local high streets
The privately owned firm, which sells everything from stationery to hardware items, filed notice of its intention to appoint administrators at the High Court last Thursday after spending weeks hunting for a rescue deal
Revealed: All the towns and cities where Wilko stores are at risk
About 12,000 jobs across 400 stores are now at risk as struggling discount retailer Wilko is put into administration.
Aberdare
Abergavenny
Accrington
Acocks Green
Acton
Aldershot
Alfreton
Alnwick
Altrincham
Ammanford
Andover
Arnold
Ashford
Ashington
Ashton-Under-Lyne
Aylesbury
Ayr
Banbury
Barking
Barnsley (3 stores)
Barnstaple
Barrow In Furness
Barry
Basildon
Basingstoke
Bedford (2)
Bedminster
Belper
Beverley
Bexleyheath
Bicester
Biggleswade
Birkenhead
Birmingham (3)
Bishop Auckland
Bishops Stortford
Blackburn
Blackpool
Blackwood
Bletchley
Blyth
Bognor Regis
Bolton (2)
Bordon
Boston
Bournemouth (2)
Bradford
Brentwood
Bridgend
Bridgwater
Brigg
Brighouse
Bristol (3)
Bromley
Brownhills
Burgess Hill
Burnley
Burton Upon Trent
Bury
Bury St Edmunds
Camberley
Cambridge
Canterbury
Cardiff (3)
Carlisle
Carmarthen
Castle Douglas
Chatham
Chelmsford
Cheltenham
Chepstow
Chester
Chester Le Street
Chesterfield
Chippenham
Clacton On Sea
Cleethorpes
Cleveleys
Clowne
Clydebank
Coalville
Cockermouth
Colchester
Corby
Coventry (2)
Cowley
Cramlington
Crawley
Crewe
Cwmbran
Dagenham
Darlington
Dartford
Denton
Derby (3)
Dereham
Devizes
Dewsbury
Didcot
Doncaster (2)
Driffield
Droitwich
Dudley
Dunstable
Durham
East Ham
Eastbourne (2)
Eccles
Edinburgh
Ellesmere Port
Ely
Epsom
Exeter
Falkirk
Falmouth
Fareham
Farnborough
Ferndown
Folkestone
Gainsborough
Gateshead (2)
Gillingham
Gloucester
Gravesend
Grays (2)
Great Malvern
Great Yarmouth (2)
Greenock
Greenwich
Grimsby (2)
Halesowen
Halifax
Hamilton
Hanley
Harlow
Harrow
Hartlepool
Havant
Haverfordwest
Hayes
Hemel Hempstead
Hereford
High Wycombe
Hinckley
Hitchin
Holyhead
Horsham
Hounslow
Hucknall
Huddersfield
Hull (2)
Huntingdon
Huyton
Ilford
Ilkeston
Ipswich
Irvine
Jarrow
Kenilworth
Kent (2)
Kettering
Kidderminster
Kings Lynn
Kingston Upon Thames
Kingston Upon Hull
Kingswood
Knowle
Lancaster
Leamington Spa
Leeds (7)
Leek
Leicester (5)
Leigh
Leighton Buzzard
Letchworth
Lewisham
Lichfield
Lincoln
Liverpool (3)
Livingston
Llandudno
Llanelli
London (9)
Long Eaton
Loughborough
Louth
Lowestoft
Luton
Maidenhead
Maidstone
Manchester (4)
Mansfield
Market Drayton
Market Harborough
Matlock
Melton Mowbray
Merthyr Tydfil
Middlesbrough
Middlesex
Mildenhall
Milton Keynes
Morriston
Motherwell
Neath
Nelson
Newark
Newbury
Newcastle
Newcastle Under Lyme
Newcastle Upon Tyne (3)
Newport
Newton Abbot
Newton Aycliffe
Newton-Le-Willows
North Shields
Northallerton
Northampton (3)
Northfield
Norwich
Nottingham (9)
Nuneaton
Oakham
Orpington
Oswestry
Pembroke Dock
Penge
Perry Barr
Peterborough (2)
Peterlee
Plymouth
Pontefract
Pontypool
Poole
Port Talbot
Porthmadog
Portsmouth
Preston (2)
Pwllheli
Rainham
Ramsgate
Reading
Redcar
Redditch
Redhill
Redruth
Retford
Rhyl
Ripley
Romford
Rotherham
Rowley Regis
Royal Kingston Upon Thames
Rugby
Rugeley
Runcorn
Rushden
Sale
Salford
Scarborough
Scunthorpe
Seaham
Selby
Sheffield (6)
Shipley
Shirley
Shrewsbury
Sittingbourne
Skegness
Skelmersdale
Slough
Solihull
South Shields
Southampton
Southend On Sea
Southport
Spalding
St Albans
St Austell
St Helens
Stafford
Stamford
Stevenage
Stockport
Stockton On Tees
Stoke-On-Trent
Stourbridge
Stratford
Strood
Stroud
Sunderland
Sutton
Sutton-In-Ashfield
Swanley
Swansea
Swindon (2)
Tamworth (2)
Taunton
Telford (2)
Thetford
Tipton
Torquay
Trowbridge
Truro
Uttoxeter
Uxbridge
Wakefield (2)
Wallasey
Walsall (2)
Walthamstow
Walton On Thames
Warrington
Washington
Waterlooville
Watford
Wellingborough
Wembley
West Drayton
West Ealing
Weston-Super-Mare
Weymouth
Whitehaven
Widnes
Wigan
Wimbledon
Winsford
Woking
Wolverhampton
Wood Green
Woolwich
Worcester
Workington
Worksop (2)
Worthing
Wrexham
Wythenshawe
Yeovil
York
The privately owned firm filed notice of its intention to appoint administrators at the High Court last Thursday after spending weeks hunting for a rescue deal. But after talks stalled with potential rescuers, PwC was forced to take hold of the company.
Wilko also saw shopper numbers drift in recent years as it faced increased competition from rivals such as B&M and Home Bargains.
These shops have continued to grow, with shoppers going in droves to their stores which are often based in out-of-town retail parks.
Retail parks have seen footfall rise sharply in recent years to the detriment of many high streets, where Wilko has the vast majority of its sites.
Phones 4U founder John Caudwell also said it was ‘not surprising’ Wilko faced weaker consumer demand due to a challenging economic climate.
He said: ‘Individuals and businesses are facing hard times as a result of inflation, post-pandemic situation and the Ukraine war, so there are hard times ahead and they aren’t going to get easier in the short term.
‘With that said, it’s surprising that a business like Wilco is struggling because a DIY environment usually prospers a little bit more in hard times because people tend to do things themselves.’
Retail analyst Richard Hyman said the retailer’s store estate has also been a hindrance for its recent trading.
‘The stores they have are a burden and mostly too big,’ he said.
‘They have excess space where they are selling a wide variety of products which they probably shouldn’t be selling to start with, stretching into all sorts of different markets.
‘They are quite large for a lot of high streets, so have the expense of rents and rates associated, but also don’t have the practicality of retail parks, let’s say.
‘There isn’t parking next to a lot of these stores, so for many people it doesn’t make sense to go there to buy large amounts of paint, or other core things like that which they sell.’
After collapsing this morning, insolvency experts told MailOnline how ‘another iconic British high street staple has fallen victim to market forces’.
Sean Moran, insolvency partner at law firm Shakespeare Martineau, told MailOnline: ‘Whilst not unexpected, Wilko’s administration will send shockwaves through the Great British retail sector with the possibility that as many as 12,000 people will face job losses.
‘It’s now down to the administrators to start the painful process of extracting any remaining value from a business that has had a presence in the UK for nearly 100 years.’
Matthew Hennessy-Gibbs, insolvency litigation partner at Keystone Law, told this newspaper that company insolvencies have reached a higher level in July than in 2009.
He added: ‘No sector is immune to what was first a financial pinch but is now a choking financial squeeze. Many big-name brands have gone to the wall in 2023 and some of those that have been ‘rescued’ have had to close a number of sites.’
Gordon Brothers, which rescued the Laura Ashley brand in 2020, was among those who held discussions over Wilko’s future before it plunged into administration.
The investors were considering a partnership with other financial investors to provide about £20million of equity, while it would have provided around £50million in debt financing, a source told Sky.
But insiders had conceded at the time that there was a ‘relatively low’ chance a deal could be completed.
Wilko’s notice at the High Court last week came after it received indicative offers to help recapitalise, but none could provide enough liquidity in the time needed.
High street retailer Wilko has collapsed into administration after emergency rescue talks fell through
It comes as another blow for Britain’s beleaguered shopping districts, which have already seen sweeping closures caused by the pandemic
Wilko shoppers reacted to the news today saying they felt sorry for staff and that they hope a buyer is found. Pictured: Empty shelves at the Wilko superstore in Walthamstow
Shoppers have accused management at Wilko of ‘sleepwalking’ into administration. Pictured: Empty shelves at the Wilko superstore in Walthamstow
This photograph shows empty shelves in the Wilko superstore in north London on Thursday morning
The branch of Wilko in Didcot where the majority of shelves were almost empty of stock since the troubles were first announced
Wilko’s notice at the High Court last week came after it received indicative offers to help recapitalise, but none could provide enough liquidity in the time needed
The chain had been hunting for a buyer in recent months but came up short against a deadline for emergency cash at the end of this month.
Specialist turnaround investors Alteri and Opcapita had also been looking at potential offers – some of which would have kept Wilko out of administration. But again, hopes of a rescue deal had been deemed as unlikely.
Last year, Wilko agreed a deal to borrow £40million from restructuring specialist Hilco, which owns Homebase, after posting significant losses. The company agreed to amend the terms of a credit facility to bolster the availability of financing to Wilko.
Retail and retail property expert Jonathan De Mello, founder and chief executive of JDM Retail told MailOnline that Hilco is the most likely buyer for the business, given it already holds a big chunk of Wilko’s debt.
He added: ‘Regardless, any buyer will need to cut costs significantly, which will involve the closure of a number of stores and inevitably a large number of staff will lose their jobs as a result.’
Mr De Mello believes the business can survive ‘and in the future potentially even thrive’. He added: ‘A lot of work is needed however to ensure that happens, so we avoid the loss of yet another much loved brand from the high street.’
Wilko launched a turnaround plan earlier this year after its sales and shopper footfall came under pressure as consumer budgets were hammered by the rising cost of living.
It said it saw ‘real progress’ against many areas in its plan and made significant cost savings but was unable to improve its finances quickly enough to avoid insolvency.
And announcing the administration this morning, Mark Jackson said: ‘Over the past six months we’ve been open with all our stakeholders including our team members that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business.
‘We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
‘I’d like to take this opportunity on behalf of the directors and the Wilkinson family to thank all of our customers and our hardworking team members across our stores, logistics and support centre who remained loyal to Wilko.
‘It’s been an honour to have worked alongside you all as we fought to realise and to maximise the significant opportunities that existed to re-establish a profitable Wilko.’
Wilko CEO Mark Jackson’s open letter in full
‘Over the past six months wilko has been very open that we’ve been considering options to accelerate a turnaround plan given that we needed to make significant changes to the way we operate to restore confidence and stabilise our business. We left no stone unturned when it came to preserving this incredible business but must concede that with regret, we’ve no choice but to take the difficult decision to enter into administration.
‘We’ve a history steeped in serving customers and communities going back to 1930. Our founder JK Wilkinson started with a single hardware shop in Leicester and for over 90 years busy, hard-working families have come to us to get their household and garden jobs done quickly, simply and at the best value prices possible.
‘We thrived and successfully grew from one to 400 stores. We did this by listening to our customers – working out what they needed and then making sure we gave it to them. Whether it was recognising the demands for DIY products in the 1950’s, creating our first wilko product range in the 1970’s, launching online shopping in the 2000’s or being the first to sell 100% plastic-free wipes across our whole range.
‘Wilko is a business built on strong values. We started out in the great depression and the second world war, we’ve been there for our customers through highs and lows, recessions and coronations. Our loyal team members past and present have always been our biggest asset, our average length of service across our stores is 10 years and, in many places generations of team members have been on hand with advice or even just a friendly smile.
‘We recently remained open as an essential retailer during the Covid-19 pandemic, staying open to serve our communities when they really needed us the most.
‘The turnaround plan included a new Chair, bringing experience in retail turnaround situations and a newly refreshed and streamlined senior team. Since January and with the help of retail advisers and experts, we’ve been facing into problems and have seen real progress against many areas of our plan.
‘We’ve made significant savings across our cost base and have been considering various options based on advice given regarding our store costs. Alongside this we’ve continued to move forward with strategically accelerating our omnichannel offer, improving the digital customer experience and opening up new marketplaces for our great value wilko products.
‘We believe that wilko has distinct characteristics with over 50% of sales in wilko brand products (over 10,000), our value, local shopping locations and ever-expanding digital capabilities.
‘Significant work has been completed to streamline costs and transform the way the business operates and our robust turnaround plan, based on annualised cost savings would have delivered the most profitable wilko ever recorded within 24-months.
‘While we can confirm we had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, without the surety of being able to complete the deal within the necessary time frame and given the cash position, we’ve been left with no choice but to take this unfortunate action.
‘I’d like to take this opportunity on behalf of the directors and the Wilkinson family to thank all of our customers, suppliers, partners and our hardworking team members across our stores, logistics and support centre who remained loyal to wilko. We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.
‘It’s been an honour to have worked alongside you all as we fought to realise and to maximise the significant opportunities that existed to re-establish a profitable wilko.’
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