Homeware and hardware chain Wilko has entered administration, putting jobs at six shops in north London at risk.
Wilko currently has stores at Tottenham Hale retail park; Wood Green Shopping City; Edmonton Green shopping centre; Capitol Way in Colindale; St George's Shopping Centre, Harrow; and High Road, Wembley.
But the boss of the high street retailer said that there was now “no choice” but to enter administration after it failed to secure a rescue deal.
Wilko, which has more than 400 shops nationwide, including the six in north London, told staff today (August 10) that it has hired administrators from PwC to oversee the process.
The move places some 12,000 jobs at risk, but the company said that “time has run out”.
Wilko last year agreed a deal to borrow £40 million from restructuring specialist Hilco after posting significant losses.
Earlier this year the retailer hired advisers from PwC in a bid to find a buyer to secure fresh funding to keep the firm trading.
Mark Jackson, chief executive officer of Wilko, said the firm had “a significant level of interest” but was “left with no choice but to take this unfortunate action” after being unable to close a deal within time.
In a letter, Mr Jackson said: “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 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.”
Some reporting by PA.
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