Lancaster MP seeks assurances over Wilko future

Sunday, 27 August 2023 10:40

The Lancaster branch of Wilko on Penny Street

The Lancaster MP has expressed her concern over the future of the Wilko store in the city centre.

The branch of the high street household store, on Penny Street, is one of 400 Wilko stores at risk of closure after the chain went into administration earlier this month.

Now, Cat Smith has written to Kemi Badenoch MP, the Secretary of State for Trade, to show support for those affected.

‘’I have a Wilko store in my constituency, and for years it has provided crucial jobs for working people in our area. Behind every one of these store closures are workers who will now lose their livelihood. This is truly awful news for them and their families,’’ states the letter.

‘’The next few weeks will be crucial for these workers' future, and in turn for their role within our economy during a cost-of-living crisis. I am therefore writing to ask the following urgent questions:

‘’What steps will you now take to ensure that the tens of thousands of Wilko staff, who could now be facing redundancy, will be supported into new employment?

‘’What are the government doing to ensure that proper, meaningful consultation is conducted by employers and administrators and that they are prevented from exploiting loopholes that allow for workers to be laid off without having complied with the full 45-day period as clearly stated under law?

‘’What options has the government considered to support the sale of Wilko stores and protect as many jobs as possible?''

(Above: Lancaster MP Cat Smith)

In a meeting with administrators earlier this week, the GMB union said it was informed there is no longer any prospect that the majority of the business will be saved.

Ms Smith added: ‘’GMB have been in touch with me as the recognised union at Wilko, with thousands of members in stores and distribution centres across the UK.

‘’They have assured me that they are also working with their members to support them through the redundancy process.

‘’I will be working closely with Lancaster City Council and local businesses to ensure that a use is found for the building should Wilko vacate. It is a priority of mine to ensure that Lancaster’s high street continues to thrive and shops are not left vacant for long.’’

A statement earlier this week from Administrators PwC, said: “Since our appointment as administrators of Wilko we have held extensive discussions with parties who expressed an interest in buying all or part of the business. While discussions continue with those interested in buying parts of the business, it’s clear that the nature of this interest is not focused on the whole Group. Sadly, it is therefore likely that there will be redundancies and store closures in the future

“We know this will further add to the uncertainty felt by workers. We will be supporting staff through this deeply unsettling time, working closely with the government, JobCentre plus, unions and large employers to maximise possibilities for a rapid return to work for employees in the event of redundancies.

“In the immediate term, all stores remain open, continue to trade and staff continue to be paid. Contrary to speculation, there are currently no plans to close any stores next week.”

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