GXO to continue distribution for Wilko despite retailer’s collapse into administration

GXO said it was continuing to fulfil its distribution duties for Wilko after the beleaguered retailer collapsed into administration this week.

PricewaterhouseCoopers (PwC) was appointed as administrator of the high street shopping chain on Thursday (10 August) after battling “incredibly challenging trading conditions”.

PwC said Wilko will continue to trade in all its stores with no immediate redundancies while it seeks a buyer.

In a statement, PwC said: “If buyers for some or all of the group are not found, it is likely that store closures and redundancies will follow.”

Wilko has 400 stores across the UK and employs around 12,500 staff.

In the meantime, GXO said its retail transport continues to operate, although it was temporarily suspended for a few days.

The logistics firm clarified that it does not and has never provided transport services for Wilko’s home delivery, as had been reported in sections of the press.

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A GXO spokesman added that Wilko was no longer taking online orders through its website and the warehouse service at Ollerton, Notts, which supports e-commerce, had been suspended.

Zelf Hussain, joint administrator at PwC, said: “Many high street retailers are facing a number of well-documented challenges and Wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates.

“Wilko has been a staple of many British high streets for decades. We know that the appointment of administrators, which comes during an already challenging time for many, will be an unsettling development for everyone involved with the business – particularly its committed team members – and the communities it serves.

Hussain added: “As administrators we will continue to engage with parties who may be interested in acquiring all or part of the business. Stores will continue to trade as normal for the time being and staff will continue to be paid.”

Meanwhile, in light of the administration and mounting job uncertainty, South Wales bus and coach provider Adventure Travel said it was ramping up its recruitment and looking for PCV drivers, with a host of jobs available across the region.

Adventure Travel MD Adam Keen said: “We’re inviting Wilko staff to talk to us about our vacancies.

“We welcome a diverse range of personnel from all career backgrounds, including factory workers and those in retail. No experience is necessary and we provide a dedicated training school offering free, unlimited in-house training, to ensure anyone and everyone can find a role with us which they can thrive in.

“We would encourage anyone who is concerned about job security, or who is inclined for a career change, to get in touch as we have vacancies ready and waiting to be filled.”

The post GXO to continue distribution for Wilko despite retailer’s collapse into administration appeared first on Motor Transport.

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