Wilko administration ‘entirely avoidable’, GMB says as 12,000 jobs at risk

THE collapse of high street giant Wilko was “entirely avoidable,” GMB warned today as 12,000 workers face redundancy.

The general union slammed poor management at the homeware retailer after Wilko boss Mark Jackson announced the chain had entered administration.

He claimed to have “left no stone unturned” in his attempts to save the firm, which has 400 shops across Britain and first began trading in 1930.

But GMB national officer Nadine Houghton blasted the outcome, saying that the workers affected will take “little solace that with better management the situation was, sadly, entirely avoidable.”

She said: “Wilko was in a prime position to capitalise on the growing bargain retailer market, but simply failed to grasp this opportunity.

“Much needed cash was taken out of the business even when it was struggling.

“GMB members have remained loyal and committed to Wilko, accepting pay cuts and cuts to terms and conditions to help the business stay afloat – yet, as late as last year £3 million was taken from the business.

“All the while, the technology to improve the Wilko home shopping offer was neglected, their place in the market lost and now 12,000 jobs are on the line.”

Administrators were expected to be appointed late today, with trading due to continue as normal for now.

Leicester East MP Claudia Webbe demanded action from Tory ministers to “protect high streets and the communities that depend on them,” after the company, which opened its first store in her city, became the latest household name to fold in recent years as online shopping booms.

She said: “With many high streets withering, it’s abundantly clear that decades of governments allowing the market to decide has done nothing to protect these places – more needs to be done and quickly.”

Claudia Webbe MP is the member of Parliament for Leicester East. You can follow her at www.facebook.com/claudiaforLE and twitter.com/ClaudiaWebbe