Wilko has secured a £40 million ($48 million) credit facility from Hilco Capital Ltd. to help the UK household and garden retailer weather the cost-of-living crisis.
(Bloomberg) — Wilko has secured a £40 million ($48 million) credit facility from Hilco Capital Ltd. to help the UK household and garden retailer weather the cost-of-living crisis.
The two-year facility is in addition to £48 million Wilko recently received from the sale and leaseback of its distribution center, according to an emailed statement. The privately-held 92-year-old business is also negotiating with landlords to help it through the “tough” trading period.
Wilko said major supply chain disruptions and a significant drop in footfall has stopped it “performing to its full potential.” The company is trying to boost its online offering as part of turnaround efforts.
Rampant inflation is weighing on consumer confidence in the UK and causing difficult conditions for many retailers. In recent months online furniture brand Made.com and fashion chains Joules and M&Co entered insolvency and retailers are warning that there is further inflation ahead.
As part of changes at Wilko, chairwoman and major shareholder Lisa Wilkinson is stepping down to be replaced by Chris Howell, former chairman of Bensons for Beds. Wilkinson, the granddaughter of the company’s founder, will remain on the board as family director.
Wilko replaced its Chief Executive Officer Jerome Saint-Marc last month with Mark Jackson, former CEO of Bensons for Beds.
“We’re making necessary changes to restore confidence and safeguard the future of the business,” Wilkinson said.
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