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Wilko's goes into Administration

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61653 HTAFC

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Let me guess, moving from high-street locations out out-of-town retail parks with free parking?
Just guessing here, but I suspect the relaunched Wilko will be mostly town centre shops, with the Range being used mostly on retail parks.

The bare bones of the Wilko business were reasonably strong with a loyal customer base. The rot set in with their most recent owners, whom I understand have form for messing up otherwise healthy retailers by not paying suppliers etc.
 
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Darandio

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Just guessing here, but I suspect the relaunched Wilko will be mostly town centre shops, with the Range being used mostly on retail parks.

The bare bones of the Wilko business were reasonably strong with a loyal customer base. The rot set in with their most recent owners, whom I understand have form for messing up otherwise healthy retailers by not paying suppliers etc.

Given they had sold their flagship distribution centre to DHL in order to raise capital i'm not so sure suppliers weren't getting paid through choice.

It does strike me as strange that the new entity seem to believe they can follow the same formula and make it work.
 

61653 HTAFC

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Given they had sold their flagship distribution centre to DHL in order to raise capital i'm not so sure suppliers weren't getting paid through choice.

It does strike me as strange that the new entity seem to believe they can follow the same formula and make it work.
Plenty of businesses do things like that- sell off and lease back non-core aspects of the business, or appoint outsourcing specialists to run the back-of-house stuff. Not necessarily a sign of trouble, though it can be... and it can backfire if poorly implemented.

A case in point: most of the operations at Asda's head office in Leeds are run by a subcontractor, including the main switchboard.
 

Dai Corner

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The bare bones of the Wilko business were reasonably strong with a loyal customer base. The rot set in with their most recent owners, whom I understand have form for messing up otherwise healthy retailers by not paying suppliers etc.
As I understand it, the founder's family have always owned the majority of the company. The last Chair of the board was his granddaughter.

As I think I said before in this thread it's hard for such a management to make the difficult decisions or do without dividends during lean times.
 

61653 HTAFC

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As I understand it, the founder's family have always owned the majority of the company. The last Chair of the board was his granddaughter.

As I think I said before in this thread it's hard for such a management to make the difficult decisions or do without dividends during lean times.
I'd half remembered (and misremembered) discussion from earlier in the thread about Hilco, who having looked back are apparently restructuring specialists rather than a new owning group. Must have been some other chain (possibly Poundstretcher) that was discussed a while back in the "Companies You Expect to Disappear" thread as having been taken over by a group with a rather shady track record.
 

Peter Mugridge

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A case in point: most of the operations at Asda's head office in Leeds are run by a subcontractor, including the main switchboard.
Oh dear.... use of a back office third party subcontractor nearly always proves to be false economy.

Any idea which one they use? For Asda's sake I hope it's not called G..P..t - that's one I haven't got a bargepole long enough for...
 

61653 HTAFC

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Oh dear.... use of a back office third party subcontractor nearly always proves to be false economy.

Any idea which one they use? For Asda's sake I hope it's not called G..P..t - that's one I haven't got a bargepole long enough for...
Last time I had involvement with them it was a company called City Facilities Management, who specialise mostly in housekeeping and non-core activities of supermarkets. Most Asda cleaners, janitors and in-store café teams are actually employed by CFM rather than Asda. Much of their recruitment is in turn done by agencies.
 

Citybreak1

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Wilko social media today has confirmed that the first two shops in Exeter and Plymouth will open on 1st December. The location of one of the two shops in the South East has been announced as Luton (although it’s legally in the East of England), which will open on 8th December. The locations of the other shop in the South East and in the North have not been announced, but they will both open before Christmas.
Bristol.
 

Dai Corner

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Cwmbran is going to reopen as a The Range
The shop will be in a 30,620 sq ft retail unit in Llywelyn Walk, formerly occupied by Wilko. A spokesperson for LCP, the town centre owners said they expect it to open to shoppers in “the next few months”.
 

Highview

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The Range has just reported a loss a £11.7m as sales fell 10% in the last financial year. They are predicting that the business will bounce back though so maybe the Wilko rebranding for some stores will bring them new trade.
 

SuspectUsual

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The Range has just reported a loss a £11.7m as sales fell 10% in the last financial year. They are predicting that the business will bounce back though so maybe the Wilko rebranding for some stores will bring them new trade.

£11m on additional unbudgeted outside storage and demurrage because of the crazy levels of stock they're sitting on. Oh, hang on, you want really crazy levels of overstocks? The previous year they spent £56 million!
 

david1212

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Yesterday I walked through the almost deserted lower area of my local shopping centre. I was surprised to see all the lights on inside Wilko's but looking in no sign of anyone or any activity. All the shelving/racking is still in place.
 

birchesgreen

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Yesterday I walked through the almost deserted lower area of my local shopping centre. I was surprised to see all the lights on inside Wilko's but looking in no sign of anyone or any activity. All the shelving/racking is still in place.
Maybe the last person out forgot to turn the lights out. We had that with a shop near me, its lights were left on for about 5 years after the shop was abandoned!
 

Snow1964

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Maybe the last person out forgot to turn the lights out. We had that with a shop near me, its lights were left on for about 5 years after the shop was abandoned!
Someone must have been paying the bill, unless local electricity company is too incompetent to cut the supply
 

Mcr Warrior

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My thoughts too. Who then picks up the tab on the leccy bill? The vacant property's landlord, perhaps?
 

Peter Sarf

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My thoughts too. Who then picks up the tab on the leccy bill? The vacant property's landlord, perhaps?
I know some people who bought a restaurant premises leasehold. They could not get a supply until the past supplier was paid the arrears. Really nasty as they were expecting to open in the most lucrative part of the year - Christmas.

A neighbour ran an extension lead and we nursed the restaurant along through Christmas. I was very very strict, no ventilation no electric cooker, rice cooker or microwave. Warmed up sauces immersed in a pot of boiling water. Used lots of gas which was not cut off. Tried to come to an arrangement but in the end had to cough up, then waited two months to get connected hence the extension lead.

But I expect someone thought it better to keep lights on for security. Then again I guess the landlord does very little other then collecting money !. I was in Scarborough about 11pm recently and the doors to Wilko were opening and closing automatically. I did not determine whether it was a shared entrance to a small shopping centre but at 11pm ?.
 

david1212

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The landlord I presume. They may have left the lights on for security reasons.

This I can understand as while in the shopping centre not to the street unlike the closed M&S next door, the Topshop unit etc Wilko did not have doors just a rollup/roll down metal perforated screen. If not noticed I wonder how difficult for the homeless to prise a gap then retreat to the back / out of sight behind the racking ends.

Only a small proportion of the lights would be required though. Presuming no divided circuit i the rows of lights it would not take that long for one person on a platform and another to move it to remove 90% of the tubes.

== Doublepost prevention - post automatically merged: ==

.... I was in Scarborough about 11pm recently and the doors to Wilko were opening and closing automatically. I did not determine whether it was a shared entrance to a small shopping centre but at 11pm ?.

I don't know the exact time but the whole shopping centre is locked out of hours, logically 30 mins before the first opening time and after the last closing time. The two coffee & snacks type food establishments only open shop hours.
 
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dangie

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Went in my newly opened local Poundland (formerly Wilko) this morning.
Shop was quite busy but sounded strangely quiet. No music.
Best of all it meant no Christmas music.
 

Peter Sarf

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Went in my newly opened local Poundland (formerly Wilko) this morning.
Shop was quite busy but sounded strangely quiet. No music.
Best of all it meant no Christmas music.
I presume the wares on sale bear no resemblance to that of the former occupier ?.
 

Citybreak1

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Went in my newly opened local Poundland (formerly Wilko) this morning.
Shop was quite busy but sounded strangely quiet. No music.
Best of all it meant no Christmas music.
I think they are refitting these shops properly next year maybe they will fix the music issue then.
 

Mcr Warrior

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I hope not. I can listen to music at home, I don’t need it while shopping, most of all Christmas music in November.
Quite! How much more in royalties do the likes of Noddy Holder and Mariah Carey need to keep the wolf from the door this Yuletide?
 

_toommm_

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I went to the Poundland in Headingley on the walk home from work, formerly the Wilkos of course. Place seemed pretty busy, but I was sad that all the tills now had to be manned rather than the weird hybrid Wilkos used where they turned the cashier displays round and made them into self-checkouts. Store was pretty well stocked and kept some of the original product layout which was handy for me, but also included food.

Didn't go upstairs, but I loved the upstairs of that Wilkos as it had almost everything you'd need for basic DIY at home. I stocked my tools for work from there previously such as screwdrivers and pliers.
 

dgl

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If you hate music then don't go into B&M at Christmas, Christmas hits are bad enough, even worse is when you don't want to pay for a PRS licence and instead play your own Christmas music! It's beyond terrible.
 

birchesgreen

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If you hate music then don't go into B&M at Christmas, Christmas hits are bad enough, even worse is when you don't want to pay for a PRS licence and instead play your own Christmas music! It's beyond terrible.
I used to like it when Sainsburys played bad-to-mediocre cover versions of popular songs (a la the old TOTP LPs but maybe a bit worse). Quite funny hearing the singers fail to make high notes over and over again.
 

dgl

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I used to like it when Sainsburys played bad-to-mediocre cover versions of popular songs (a la the old TOTP LPs but maybe a bit worse). Quite funny hearing the singers fail to make high notes over and over again.
B&Q used to use covers as well though they've seen sense and now use original recordings.
 
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