A Wilko distribution centre has been sold to a private equity giant.
Canadian asset manager Brookfield has agreed to buy the lease on Wilko’s 1.1 million square foot distribution centre in Worksop, Nottinghamshire for £88 million.
Wilko originally sold the distribution centre to DHL for £48 million only months ago.
It comes after news broke earlier this week that the retailer is set to close its toy departments, focusing instead on selling garden and household goods, and follows the revelation that 95 Wilko staff in Worksop were at risk of being made redundant as the retailer looked to outsource its customer services.
The business agreed a £40m two-year revolving credit facility with Hilco at the start of the year, to allow it to increase financial flexibility as it accelerates plans for turnaround.
Wilko’s year-end results showed a drop in sales, while the firm slipped to a pre-tax loss, as the pandemic continued to bite.
Nadine Houghton, GMB national officer, said: “The sale of Wilko distribution centre to Canadian investment and private equity giant Brookfield and the recent Hilco revolving credit facility raises further concerns about the ever-growing influence of private equity investors in the UK high street.
“Highly debt leveraged models are being used to buy up the UK high street with little or no over sight from regulators.
“The GMB union, which represents workers on the high street and in logistics, is calling for the role of the CMA to be expanded – giving greater regulatory oversight in relation to private equity buyouts and ensuring greater protection of both consumers and workers.”
