FabSwingers.com forum: Wilko collapses into administration

By *hagTonight OP Man
over a year ago

From the land of haribos.

I was surprised to read that wilko have collapsed into administration and putting 12000 jobs at risk.

I was looking into when wilko was formed and it was in 1930 in leicester, so it have been going on for 93 years.

It seems that the reason it did it, was because it was unable to find emergency investment to save its 400 shops across the uk.

Why do you think that they went into administration?

Are we seeing the end to the big high street shops?

Reply privately

Reply in forum

Reply +quote

By *ercuryMan
over a year ago

Grantham

Outdated stores that couldn't compete with Amazon.

Inevitable.

Reply privately

Reply in forum

Reply +quote

By *deepdiveMan
over a year ago

France / Birmingham

"Outdated stores that couldn't compete with Amazon.

Inevitable."

If this was the reason then there are going to be a lot more firms that will collapse...

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

"Outdated stores that couldn't compete with Amazon.

Inevitable."

This. We haven't been in to a supermarket or city centre shopping for more than 5 years, just local shops for odd bits.

Bess x

Reply privately

Reply in forum

Reply +quote

By *9alMan
over a year ago

Bridgend

"Outdated stores that couldn't compete with Amazon.

Inevitable.

If this was the reason then there are going to be a lot more firms that will collapse..."

there is a Wilco in my local town its an excellent shop I will miss it if it has to close

Reply privately

Reply in forum

Reply +quote

By *lik and PaulCouple
over a year ago

cahoots

If enough people use shops they stay open. This will be Internet shopping or competition from the likes of B&M. Retail has always been brutal and that's unlikely to change.

Reply privately

Reply in forum

Reply +quote

By *hagTonight OP Man
over a year ago

From the land of haribos.

"Outdated stores that couldn't compete with Amazon.

Inevitable.

This. We haven't been in to a supermarket or city centre shopping for more than 5 years, just local shops for odd bits.

Bess x"
This. I also think that they cant compete with amazon. I always go to the small shops first like wilk. I wonder if brexit could also be the reason for it? x

Reply privately

Reply in forum

Reply +quote

By *eroy1000Man
over a year ago

milton keynes

It's a shame if it's the end of Wilko as I always found them very good. It seems they are struggling with b&m and also the range for the customers that still prefer to go into an actual shop as opposed to online. Looks like they may join Woolworths in long established names succumbing to modern day trends

Reply privately

Reply in forum

Reply +quote

By *oubleswing2019Man
over a year ago

Colchester

I don't use the high street because the prices are sky high. I also don't bother with out of town shopping retail parks either, because they are only marginally less expensive.

Search, buy, deliver.

Thank you Amazon (or other e-tailers, including supermarkets.)

Having saved hundreds in fuel costs and parking charges over just 1 year alone, no to mention the time, I'm seriously wondering if a car is even worth it, when you can just click and get delivery to your door.

Reply privately

Reply in forum

Reply +quote

By *ercuryMan
over a year ago

Grantham

Wilkinson suffered by having a lot of expensive lease high street shops.

Other smarter operators, such as Poundland and Band M, moved to retail parks, where there is free parking and one stop shopping.

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

Other cheaper stores made it competitive theirs more now which sell similar items.... Previously was only few b&m pound stretcher. B&m cut down most of their stores, pound stretcher went bust. Home bargains take a huge amount of profit from Wilkos even though may have less stores and less staff

Reply privately

Reply in forum

Reply +quote

By *ove2pleaseseukMan
over a year ago

Hastings

"Wilkinson suffered by having a lot of expensive lease high street shops.

Other smarter operators, such as Poundland and Band M, moved to retail parks, where there is free parking and one stop shopping."

All shopping is changing most high street shops will close as some one said its brutal large overheads slim profit. And as more are lost less will go.

We don't go in to town any more that's why banks are closing just not the foot fall.

Woolworths I guess was the first big one to go.

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

"Wilkinson suffered by having a lot of expensive lease high street shops.

Other smarter operators, such as Poundland and Band M, moved to retail parks, where there is free parking and one stop shopping.

All shopping is changing most high street shops will close as some one said its brutal large overheads slim profit. And as more are lost less will go.

We don't go in to town any more that's why banks are closing just not the foot fall.

Woolworths I guess was the first big one to go."

All the stores that have disappeared in past are still active abroad

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

[Removed by poster at 10/08/23 22:04:20]

Reply privately

Reply in forum

Reply +quote

By *obilebottomMan
over a year ago

All over

It is a pity and all to blame for abandoning some of the traditional shops mostly for convenience. Wilko prices were very competitive and also stocked some stuff that not available in similar shops. We complain about high street shops closing but we don't support them. It is not just about the shops, it's the whole feel and ambiance of high streets changing and mostly declining. I do shop online but try to go to shops too, especially local ones. I don't want to see empty and boarded buildings but sadly it is what is happening everywhere. I am aware thatv times change , for those in the habit of reminding everyone that things change and we need to move on, but still it is a shame.

Reply privately

Reply in forum

Reply +quote

By *hagTonight OP Man
over a year ago

From the land of haribos.

Are we seeing the end of the big high street chains? I remember shops like woolworths and army and navy.

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

I think Roger is going to be upset about this.

Reply privately

Reply in forum

Reply +quote

By *orleymanMan
over a year ago

Leeds

"I was surprised to read that wilko have collapsed into administration and putting 12000 jobs at risk.

I was looking into when wilko was formed and it was in 1930 in leicester, so it have been going on for 93 years.

It seems that the reason it did it, was because it was unable to find emergency investment to save its 400 shops across the uk.

Why do you think that they went into administration?

Are we seeing the end to the big high street shops?"

Over expansion

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

I think Amazon have had a big impact on high street shops and will continue to do so.

Earlier this week I was in home bargains and they had a piece of garden furniture I wanted. It was £45 reduced to £35 and it was by the till. I really wanted it and had a chat with my friend about if it would fit in my car to get it home. We decided that it wouldn’t so I took a picture of it and the label and decided to come back in a friends car later in the day to collect it.

When I got home I asked my friend if we could go back in her car. She said that we would have to park in the big car park out of town and walk in and that’s £5 all day.

I looked on Amazon and found the same piece of garden furniture for £30 with free delivery. I bought it and it arrived at 11:30am the next morning.

I think wilko going will now accelerate a down ward spiral for shops.

That’s one less shop in towns so more people won’t go in to towns and will order online, causing other shops to go quiet and lose profits etc…..

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

The price rise has hit large stores very badly and not being part of the European Union has been a major factor as the saying goes United we stand the government has put everything up/down shit creek

Reply privately

Reply in forum

Reply +quote

By *apybarasCouple
over a year ago

High Lighthouse!

I'm sure paying out millions in dividends had no effect though.

Reply privately

Reply in forum

Reply +quote

By *ove2pleaseseukMan
over a year ago

Hastings

Oh is this why woolworths collapsed and the like of Debenham.

Reply privately

Reply in forum

Reply +quote

By *apybarasCouple
over a year ago

High Lighthouse!

Oh is this why woolworths collapsed and the like of Debenham.

No, I believe they failed for much the same reason. Also the same reason our water companies etc. are "struggling".

They all take on huge debt, then use that debt to make owners/shareholders rich.

Reply privately

Reply in forum

Reply +quote

By *otMe66Man
over a year ago

Terra Firma

This is not an accurate reflection of the facts..

Firstly it wasn't the government who decided to leave the EU, it was the people of the UK.

Secondly, Wilko like others on the high street with many stores failed or could not compete with digital sales and presence. Covid blew a hole in their high street presence and their digital offering looks poor, a half way house, which would mean people need to shop online in multiple places to get everything they need. That doesn't work, delivery costs increase and delivery times are different and more of them.

That is part of the reason Wilko failed, a strategic direction which was lacking, therefore poor management.

Reply privately

Reply in forum

Reply +quote

By *orleymanMan
over a year ago

Leeds

This is not an accurate reflection of the facts..

Firstly it wasn't the government who decided to leave the EU, it was the people of the UK.

That is part of the reason Wilko failed, a strategic direction which was lacking, therefore poor management. "

Agreed.

There are a multitude of factors.

Over expansion being one of them.

I was an accountant at arcadia when they went through their cva.

Their biggest fuck ups

1. Trying to break the American Market. And bot understanding the rent laws. They had to sell a pair of jeans s in manhattan every 6 seconds dd to break even because they didn't understand how American rent laws worked

2. 50m investment in Singapore to supply China in a deal whereby the Chinese party pulled out in the JV A

pulled out

3. 6 separate websites for buying all arcadia named good toyshop,Burton,miss aelfrodge DP ETC. The only created a whole online 1 in 2019 about a decade too late.

4. Next day deliveries.( simply didn't do it)

5. Selling their hq in Oxford Street for 20m realising the rent on the leaseback agreement was too high. And then buying it back 5 years later for 90m.

6. Having 930 separate stores across the uk.

7. Building a 40m Daventry distribution centre instead kf paying logistics specialists.

8. Trying to bring in an accounting software that newlook wasted 1.5m on and failed to work and thinking you could make it work...spending a further 3m

9. Across 900 stores councils wanting in excess of 150m in council tax. Even though footfall fell 66% from 2010 to 2018

10. Leases lasting 100 years.

Wilkinson over expanded.

In a dying high street they still operated in town centres, they expanded by borrowing, they had no niche. Weren't cheaper than the pound shops, didn't supply as much as testosterone Asia etc.

They got caught in no man's land.

Reply privately

Reply in forum

Reply +quote

By *oubleswing2019Man
over a year ago

Colchester

"Agreed.

There are a multitude of factors.

Over expansion being one of them.

I was an accountant at arcadia when they went through their cva.

Their biggest fuck ups

2. 50m investment in Singapore to supply China in a deal whereby the Chinese party pulled out in the JV A

pulled out

3. 6 separate websites for buying all arcadia named good toyshop,Burton,miss aelfrodge DP ETC. The only created a whole online 1 in 2019 about a decade too late.

4. Next day deliveries.( simply didn't do it)

5. Selling their hq in Oxford Street for 20m realising the rent on the leaseback agreement was too high. And then buying it back 5 years later for 90m.

6. Having 930 separate stores across the uk.

7. Building a 40m Daventry distribution centre instead kf paying logistics specialists.

8. Trying to bring in an accounting software that newlook wasted 1.5m on and failed to work and thinking you could make it work...spending a further 3m

9. Across 900 stores councils wanting in excess of 150m in council tax. Even though footfall fell 66% from 2010 to 2018

10. Leases lasting 100 years.

Wilkinson over expanded.

In a dying high street they still operated in town centres, they expanded by borrowing, they had no niche. Weren't cheaper than the pound shops, didn't supply as much as testosterone Asia etc.

They got caught in no man's land.

A very good analysis.

Which does beg the question...why would anyone of sound mind even contemplate opening a bricks and mortar store any more ? It just isn't worth it, reading that litany of pitfalls.

Reply privately

Reply in forum

Reply +quote

By *orleymanMan
over a year ago

Leeds

Testosterone and asia

Tescos and Asda bloody autocorrect

Reply privately

Reply in forum

Reply +quote

By *ornucopiaMan
over a year ago

Bexley

The wonders of home delivery are all very well if you happen to spend time at home. Otherwise the only realistic alternative is having stuff delivered to a local pick up point.

Most things need to by are needed straight away. hence going to a shop. This is not a cultural change which I particularly like and I'm glad I lived the greater part of my life under the old system.

I have only ever bought a few car parts via the internet and it has never entered my mind to use Amazon (or even Love Honey).

Reply privately

Reply in forum

Reply +quote

By *otMe66Man
over a year ago

Terra Firma

"The wonders of home delivery are all very well if you happen to spend time at home. Otherwise the only realistic alternative is having stuff delivered to a local pick up point.

Most things need to by are needed straight away. hence going to a shop. This is not a cultural change which I particularly like and I'm glad I lived the greater part of my life under the old system.

I have only ever bought a few car parts via the internet and it has never entered my mind to use Amazon (or even Love Honey)."

"Most things need to by are needed straight away"

Not a left wing spell check

Reply privately

Reply in forum

Reply +quote

By *ornucopiaMan
over a year ago

Bexley

"Most things need to by are needed straight away"

Not a left wing spell check

Petard being ordered via internet!

Reply privately

Reply in forum

Reply +quote

By *rDiscretionXXXMan
over a year ago

Gilfach

"Most things need to by are needed straight away"

"Not a left wing spell check"

"Petard being ordered via internet!"

I hope you included the optional hoist attachment.

Reply privately

Reply in forum

Reply +quote

By *otMe66Man
over a year ago

Terra Firma

"Most things need to by are needed straight away

Not a left wing spell check

Petard being ordered via internet!

I hope you included the optional hoist attachment."

No need it comes with a healthy dose of karma, it tends to balance itself out.

Reply privately

Reply in forum

Reply +quote

By *ittleMissCali_MrDJCouple
over a year ago

wonderland.

"Outdated stores that couldn't compete with Amazon.

Inevitable.

If this was the reason then there are going to be a lot more firms that will collapse...

there is a Wilco in my local town its an excellent shop I will miss it if it has to close "
it is much to expensive though. I went in one day last week as I was close by and needed some bits... I came out without anything as it was so overly priced

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

15 minute cities are a bad thing they say, while also rarely moving 15 minutes away from where they live...

Reply privately

Reply in forum

Reply +quote

By *izandpaulCouple
over a year ago

merseyside

"Are we seeing the end of the big high street chains? I remember shops like woolworths and army and navy."

Army and Navy.

Christ, when was the last time you bought a uniform or a billy can.

Reply privately

Reply in forum

Reply +quote

By *onicZMan
over a year ago

Nottinghamshire

Wilkinsons was a good shop selling garden and DIY stuff. Back then they were like the b and q but on the high street.

When they re branded to wilco, they turned into a discount retailer. They were doomed from the start here as there's no way they'd compete with the likes of b and m or home bargains

Reply privately

Reply in forum

Reply +quote

By *eandmrsjones69Couple
over a year ago

Middle England

Wilko failure is purely down to mis management. Internal family fighting. Taking millions out of the company as dividends. A few years ago B&M had half the turnover but now its turnover is more than doubled wilko.

Lost their identity, store locations, long expensive leases, poor online presence. Sold their distribution centre to DHL for 40mill, who then sold it for 80mill months later; the list goes on...

This is nothing to do with the EU or brexit. Sorry to disappoint you.

Reply privately

Reply in forum

Reply +quote

By *ns4youCouple
over a year ago

I do online shoe repairs did have a shop but then had to close it doe to lack of footfall online is far better as now ppl send me there shoes from all over the UK and France . Best move I have made and it works well .

Reply privately

Reply in forum

Reply +quote

By *rucks and TrailersMan
over a year ago

Ealing

"The price rise has hit large stores very badly and not being part of the European Union has been a major factor as the saying goes United we stand the government has put everything up/down shit creek "
You probably need to look at the share price of B and M . It is up 50% in the last five years. Other retailers have operated successfully and were given support by the government during Covid .

Wilko failed to move with the times and have paid the price . If you want to look at a success story check out B and M.

Reply privately

Reply in forum

Reply +quote

By *erlins5Man
over a year ago

South Fife

"Outdated stores that couldn't compete with Amazon.

Inevitable.

If this was the reason then there are going to be a lot more firms that will collapse..."

Yep

Reply privately

Reply in forum

Reply +quote

By *ornucopiaMan
over a year ago

Bexley

"Outdated stores that couldn't compete with Amazon.

Inevitable.

If this was the reason then there are going to be a lot more firms that will collapse...

Yep"

I hope everyone thinks long and hard about the part they played in this change coming about.

Same goes for when we wish there was still cash.

Reply privately

Reply in forum

Reply +quote

By *rucks and TrailersMan
over a year ago

Ealing

There is an article about B&M in the national press today. Their success is self explanatory. Their share price is up 33 % this year . Retail is only dead for those who fail to change with the times . Shares in Associated British Foods (Pimark ) are up 20 %.

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

"The price rise has hit large stores very badly and not being part of the European Union has been a major factor as the saying goes United we stand the government has put everything up/down shit creek You probably need to look at the share price of B and M . It is up 50% in the last five years. Other retailers have operated successfully and were given support by the government during Covid .

Wilko failed to move with the times and have paid the price . If you want to look at a success story check out B and M. "

B and m will be suffering also and closing a percentage of its stores in the rise of cost

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

"There is an article about B&M in the national press today. Their success is self explanatory. Their share price is up 33 % this year . Retail is only dead for those who fail to change with the times . Shares in Associated British Foods (Pimark ) are up 20 %. "
b&m has had a rollercoaster! It lost half its value in the first 3q of 2022, and has recovered a good chunk of it. It's had a good 2023 but i'd not say it's success is self explanatory if we would have been calling it a failure a year ago.

B&m may have benefited from being publically traded. Wilko looks like it was a cash cow for the family.

Reply privately

Reply in forum

Reply +quote

By *ox1 red leaderMan
over a year ago

farnham

"Outdated stores that couldn't compete with Amazon.

Inevitable.

If this was the reason then there are going to be a lot more firms that will collapse...

Yep

I hope everyone thinks long and hard about the part they played in this change coming about.

Same goes for when we wish there was still cash."

Reply privately

Reply in forum

Reply +quote

By *irldnCouple
over a year ago

Brighton

"I do online shoe repairs did have a shop but then had to close it doe to lack of footfall online is far better as now ppl send me there shoes from all over the UK and France . Best move I have made and it works well ."

“Shoe repairs / lack of footfall” has got to win pun of the month

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

WhSmith face closure

I researched Wilko collapse. Lets say it is not as we see it in media. Media paints just administration. Which is not good for those with jobs. I know they had distribution issues nothing to do with brexit. Lots of director changes, borrowed money to try and save them. There is a lot more to the wilko collapse.

Still no condom buying from them or sex in aisles

Reply privately

Reply in forum

Reply +quote

By *hagTonight OP Man
over a year ago

From the land of haribos.

"Are we seeing the end of the big high street chains? I remember shops like woolworths and army and navy.

Army and Navy.

Christ, when was the last time you bought a uniform or a billy can.

"
I havent done it for a long time ago, but yes, it is more that you are used to see the shop all the time when you walk past it, so you notice it more that way

Reply privately

Reply in forum

Reply +quote

By *2000ManMan
over a year ago

Worthing

Think there is a couple of offers on the table to save Wilkos. One from M2 Capital looks promising. I go in there a number of times for various items which the supermarket charges more for.

Reply privately

Reply in forum

Reply +quote

By *hagTonight OP Man
over a year ago

From the land of haribos.

"Think there is a couple of offers on the table to save Wilkos. One from M2 Capital looks promising. I go in there a number of times for various items which the supermarket charges more for."
Yes, there seems to be some good news about it, that there are a rescue bid of £90m from a private equity firm, the administrator have been told to accept it

Reply privately

Reply in forum

Reply +quote

By *ornucopiaMan
over a year ago

Bexley

"Yes, there seems to be some good news about it, that there are a rescue bid of £90m from a private equity firm, the administrator have been told to accept it

Are asset strippers still rife?

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

"Think there is a couple of offers on the table to save Wilkos. One from M2 Capital looks promising. I go in there a number of times for various items which the supermarket charges more for.Yes, there seems to be some good news about it, that there are a rescue bid of £90m from a private equity firm, the administrator have been told to accept it

Doesn't look like it's been accepted the shelves in my local are going empty extremely quick it's like the men jumped in first for most of the hardware and women clearing out the bathroom /kitchenware ,cosmetics and fragrances and toiletries

Reply privately

Reply in forum

Reply +quote

By (user no longer on site)
over a year ago

Wilko went years ago in my mind. Hardly shopped there.

I did a background search and lets say I did not approve of their incorporation.

Reply privately

Reply in forum

Reply +quote

By *ophieslutTV/TS
over a year ago

Central

"Wilko went years ago in my mind. Hardly shopped there.

I did a background search and lets say I did not approve of their incorporation. "

A bit sickening to see the £millions taken out of it by owners, including through the past year.

Reply privately

Reply in forum

Reply +quote

By *hagTonight OP Man
over a year ago

From the land of haribos.

The latest news about the rescue deal for wilko is that it have now collapsed and the union is saying that all the 400 stores will close by oktober and according to gmb all the 12500 jobs at the chain is "likely" to go too.

Reply privately

Reply in forum

Reply +quote

By *andAukCouple
over a year ago

leeds

This has hit us personally.

All options are now exhausted.

The main warehouse closes next Tuesday fully, and all stores will be closed by early October.

So four weeks at best.

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

"The latest news about the rescue deal for wilko is that it have now collapsed and the union is saying that all the 400 stores will close by oktober and according to gmb all the 12500 jobs at the chain is "likely" to go too."

Deal fell through because the buyers wanted to change the name of the percentage of stores they bought... It's going to be valued less just a empty building

Reply privately

Reply in forum

Reply +quote

By *oubleswing2019Man
over a year ago

Colchester

400 new locations across the UK that could be refitted for temporary housing, be it homeless or whatever. (Would need special zoning of course, as currently Retail units).

400 buildings covering the length and breadth of the UK that could be put to civic use and help communities.

The mind boggles at the possibilities.

Reply privately

Reply in forum

Reply +quote

By *ucka39Man
over a year ago

Newcastle

"400 new locations across the UK that could be refitted for temporary housing, be it homeless or whatever. (Would need special zoning of course, as currently Retail units).

400 buildings covering the length and breadth of the UK that could be put to civic use and help communities.

The mind boggles at the possibilities."

Or more swinging clubs different atmosphere each floor

Reply privately

Reply in forum

Reply +quote

By *rDiscretionXXXMan
over a year ago

Gilfach

"400 new locations across the UK that could be refitted for temporary housing, be it homeless or whatever. (Would need special zoning of course, as currently Retail units).

400 buildings covering the length and breadth of the UK that could be put to civic use and help communities.

The mind boggles at the possibilities."

They aren't available for free, and they aren't the only 400 empty buildings in the country. If we wanted to create temporary housing, there's no reason to wait for Wilko to finally collapse, we could just buy up buildings today.

Reply privately

Reply in forum

Reply +quote

By *orleymanMan
over a year ago

Leeds

"400 new locations across the UK that could be refitted for temporary housing, be it homeless or whatever. (Would need special zoning of course, as currently Retail units).

400 buildings covering the length and breadth of the UK that could be put to civic use and help communities.

The mind boggles at the possibilities.

You can't just plonk people into empty stores.

You'd have to fully refit them. Make them a housing compliant place to live typically on a high street where people can see into.

Reply privately

Reply in forum

Reply +quote

Post new Message to Thread