12,500 Jobs At Risk As UK Retailer Wilko Collapses

British household goods company Wilko has collapsed as a result of big debts, its boss announced Thursday, affecting about 12,500 jobs as high inflation and interest rates hurt consumers and businesses.

The group, operating out of 400 UK stores and online selling cleaning and garden products in addition to other small household items, has formally entered administration, a process that could see parts of the business saved.

“We’ve all fought hard to keep this incredible business intact but must concede that time has run out, and now we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators,” Wilko chief executive Mark Jackson said in an open letter on its website.

“It is incredibly sad that a well-loved, family business that has been on the high street for over 90 years has had to go into administration,” said Zelf Hussain, a partner at PwC heading the adminstration team.

“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.”