Wilkos

[dubsie]

Our local town has lost yet another shop space and there are now more empty shop fronts than shops. And I was talking to our accountant about it while preparing my own accounts for our returns.

My accountant made it very clear there is more money to be made winding a big company up like Wilkos than finding the investment needed to keep it running. So i was very blunt and asked in his opinion whether the company could have been turned around and he said without a doubt he thinks it was wound up to make money and the debts were very small considering the size of the company. The company had a lot of real estate and on paper and it's value far exceeded its debt risk.

I think this is predatory capital in full glory destroying jobs and accelerating the decline of our country. I'm surprised our media isn't talking about this because apparently it's now common practice that adminstration companies are eager to wind up very good businesses because there is a lot of money to be made

it doesn't look like any potential buyers agree.
My guess is they didn't like what they saw once they started to look into the books.

The administrators report should be worth a read...

It is interesting that B&M bought some of the stores since they are after the same market. I wonder if they bought sites on industrial estates or plan to be on the high street ? (The B&Ms that I have been to have been on industrial estates)

I've been to a B&M but wilkos tend to be found in town centres, with the occasional modern branch on retail parks which would be rented and not owned.

If the company's "value far exceeded its debt risk" then it wouldn't be definition have been insolvent and needed to go into administration. It's not the perogative of administration companies to impose themselves upon companies in such situations. Why do you think Wilko would have sought out administration when they didn't actually need to?

They could not raise the capital but when administrators are appointed they should look for buyers but if it's more profitable to wind it up they will now choose that option over saving thousands of jobs and a high street brand. All they are looking for is how to pay down it's debts but there's no mention of tax payer liability for pensions etc ....it's all tilted to please the banks and accountants

I read that Wilkos issue was that the stock suppliers were refusing to sell stock to them (due to concerns about being paid) as a result the stores had empty shelves for months.
Customers can't buy what's not there.
It surely didn't matter if Wilko owned their buildings or whatever - you need products on the shelves to sell to be a successful store.