B&M saves Wilko stores as rival buys up 51 shops on the brink of closure

dailyrecord.co.uk:

Wilko has been saved from collapsing into administration by fellow retailer B&M in a rescue deal that will save over 50 stores from going into administration.

It has been reported that the budget retail chain has entered a multi-million pound deal that will see it acquire up to 51 stores from the troubled retailer.

It comes after Wilko, which operates around 10 Scottish stores, fell into administration just last month, with administrators at PricewaterhouseCoopers (PwC) spending the last few weeks looking to secure rescue deals from a range of firms.Administrators have held talks with a range of potential buyers, with the most recent being M2 Capital.

However, the rescue bid with the private equity firm fell through after it failed to provide evidence that it had the necessary funds to save the company.But on Tuesday, B&M European Value Retail said it has agreed to acquire up to 51 Wilko sites from the administrators in a deal worth up to £13 million.In a statement, B&M added: “The consideration is fully funded from existing cash reserves and the acquisition is not expected to be conditional on any regulatory clearances."An update on the timing of these new store openings will be provided in the H1 interim results announcement on November 9." Don't miss the latest news from around Scotland and beyond.