HIGHSTREET CHAIN WILKO GOES INTO ADMINISTRATION WHICH MEANS THE STORES WITHIN SALFORD COULD CLOSE

Wilkinson (WILKO) has announce it is to file for administration, a move that could put 12,000 jobs in the U.K. under and see it's 400 stores close for good unless a buyer can be found.

Business advisors PricewaterhouseCoopers (PwC) has been advising Wilkinson's and had already started discussions with prospective financial investors about raising new equity to fund the business through a complex restructuring process.

The chain which has stores within Salford confirmed in January they had made the tough decision to close some existing shops and that the first set of affected stores would shut their doors as early as February.

Multiple Wilko shops have already closed for good with bosses confirming long and expensive leases as one of the reasons why.

In recent months, it has been seeking to finalise a company voluntary arrangement (CVA) – a mechanism that would trigger steep rent cuts at hundreds of stores.

The boss of the homeware and hardware chain said it is expected to enter insolvency after failing to secure a takeover to help the business with "mounting cash pressures".

It has been hit by inflationary pressures and supply chain challenges as well as in recent years, a downturn in footfall due to the pandemic.

The stores in Salford and Eccles currently remain open as usual.