Why is Wilkos shutting down and how can this affect the economy?
In recent news, it has come to public attention that Wilkos have been unable to secure funding in order to save their 400 stores around the UK and has made the decision to shut down a vast majority of their stores in order to cut down the cost of running them. As of right now there has been 14 confirmed stores closing, which consists of:
- Bournemouth
- Stockton
- The Fort, Birmingham
- Shipley
- Scunthorpe
- Narborough Road, Leicester
- Grantham
- Redditch
- Rotherham
- Skegness
- Llanelli
- Merthyr Tydfil
- Cleethorpes
- Woolwich
Plans are currently being made with other business leaders in order to try and save the brand, however, it is highly unlikely that a buyer will be secured so it may end up being divided to other companies.
Due to Wilko having to shut down so many stores UK wide, this can lead to an effect in the economy as over 12,500 employees are at risk of becoming redundant. Owners at wilko say “they remain hopeful that a viable buyer will save the jobs of their employees” but this is not guaranteed so employees are told to prepare for the worst just in case.
There is currently a promising, ongoing conversation with the owners at HMV which, if everything goes to plan, could potentially save up to 300 Wilko stores UK wide. There has also been speculation that poundland, home bargains and b&m might also be interested in the firm.
In conclusion, Wilko is at major risk of shutting down due to not being able to keep up with funding which can lead to the loss of many jobs and an increase in unemployment, but there is still some hope that the company may survive if other companies are interested in buying the company.
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