Edinburgh Wilko store among the 408 branches across the UK facing closure after collapse

Staff at Edinburgh store facing uncertain future

Edinburgh Wilko staff working at the Fort Kinnaird Retail Park branch face an uncertain future after the announcement today that the homeware retailer has fallen into administration.

Wilko has 10 Scottish stores and employs 12,500 people across the UK. Today, it told staff it has hired administrators from PwC to oversee the process after failing to secure a rescue deal. Nottinghamshire-headquartered Wilko has been trading since 1930 but has faced stiff competition in recent years from fast-growing rivals such as B&M, Home Bargains and Poundland, compounded by the recent cost-of-living crisis and rising costs.

As well as the Edinburgh store, Wilko has branches nearby at the Centre in Livingston and at Falkirk High Street. It is unknown how many staff are employed at the Fort Kinnaird branch but the company employs 200 people across the UK, with the administrators promising to continue to pay staff during this time.

The Wilko store at Fort Kinnaird Retail Park in Edinburgh could soon close its doors for good after the UK-wide homeware company went into administration. Photo: Google.

Initially, Wilko will continue to trade all stores without any immediate redundancies as discussions with interested parties continue. If buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow.

In an emotional open letter, Wilko chief executive Mark Jackson said the company had received “a significant level of interest” but was “left with no choice but to take this unfortunate action” after being unable to close a rescue deal in time.

He added: “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.”

If another company fails to buy any of the stores or parts of the business out of administration, Wilko risks becoming one of the highest-profile retail casualties since Debenhams and Topshop and Burton owner Arcadia.

Zelf Hussain, joint administrator and PwC partner, said: “It is incredibly sad that a well loved, family business that has been on the high street for over 90 years has had to go into administration today. I know the management team has left no stone unturned in trying to save the business.

“Many high street retailers are facing a number of well-documented challenges and wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.

“Wilko has been a staple of many British high streets for decades. We know that the appointment of administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business - particularly its committed team members - and the communities it serves.

“As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”

The retailer was founded as a hardware shop in Leicester in 1930, but quickly expanded across the UK, growing into other markets such as garden products and stationery.