B&M is set to take over 51 Wilko stores (Image: GETTY)
High street brand B&M has agreed to take on dozens of Wilko stores, as discussions over a more extensive rescue deal continue. B&M will purchase 51 Wilko sites from administrators in a ￡13m deal, it was announced today.
B&M has not disclosed which stores it has bought nor how many jobs have been saved - but the GMB trade union, which represents more than 3,000 Wilko workers, said it has been informed that 1,016 jobs will be axed across 52 Wilko stores.
However, a wider deal to rescue the business appears to be on the rocks due to issues with suppliers. Doug Putman, the Canadian businessman who saved HMV, had provisionally secured financing from Gordon Brothers for a 300 store acquisition.
That deal now appears to be under threat.
According to Sky News, insiders at PricewaterhouseCoopers (PWC), Wilko's administrator, said that Mr Putman remained in contact with the firm about a less extensive deal, but they added that there were no guarantees it would come to anything.
In a statement, B&M said: “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.”
Thousands of Wilko jobs remain at risk (Image: Getty)
READ MORE Wilko's last-ditch bid for survival with man who saved HMV is 'stone dead'
The homeware brand fell into administration in August after it was hit by sharp losses and cash flow issues.
So far, 283 jobs have been lost, mainly from its Worksop support centre. However if there are mass store closures, then thousands of jobs may go.
Joint administrator Jane Steer said: "We will continue to do all that we can to support staff through this period of difficult upheaval, and to maximise their opportunities for a rapid return to work.
"Our priority is to ensure that all team members affected by redundancy are assisted in processing their claims with immediate effect."
B&M are to take on 51 Wilko stores (Image: PA)
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Wilko, which has its headquarters in Worksop, Nottinghamshire, was founded in 1930 and has been an regular fixture on UK high streets up and down the country.
In the 1990s, the chain had become a firm favourite among British shoppers, however in recent years it has come under pressure from discount competitors Poundland, The Range and Home Bargains.
Poundland's parent company Pepco has been looking at buying it, with reports of a possible deal for 100 Wilko stores.
Meanwhile The Range had offered to buy up Wilko's brand and online operations, according to Sky News.
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