Wilko distribution centres close today
PwC, the administrators of defunct UK homeware chain Wilko, have confirmed that the retailer’s distribution centres in Worksop and Wales will close today with the loss of 300 jobs.
By Liza Helps Property Editor Logistics Matters
WILKO HAD two distribution centres – a 1.1 million ft2 facility in Worksop, Nottinghamshire and a 900,000 ft2 facility on Euro Park, Newport, Wales.
The warehouse in Worksop was part of a £48 million sale and leaseback at the end of last year when the struggling retailer was looking for capital to shore up its finances. DHL snapped up the property and then re-sold it less than two months later to Canadian private equity firm Brookfield Asset Management for a whopping £88 million leading to questions being asked if Wilko was misled on the value of the property at the time. Brookfield acquired the property with DHL agreeing a 15-year head lease on it at a net initial yield of around 5.75% to 6%.
It was reported that sources close to the controversial deal by Wilko said that the retailer, which went into administration in August, put the investment up as a ‘fire sale’, because it ‘desperately needed the cash’.
A total of 52 stores nationwide will close, leading to 1,016 staff redundancies while a further 51 stores have been bought by rival retailer B&M for £13 million.
