UK retailer Wilko gets last-minute rescue bid

LONDON

Private equity firm M2 Capital has made an offer to take over British household goods company Wilko, according to media reports, days after administrators warned of "likely" redundancies and store closures.

London-based M2 Capital has made a bid of $113 millon to take over Wilko along with a promise to retain all employees for two years, The Guardian newspaper reported.

The British group, which has 400 stores and 12,500 employees, entered administration in early August, hit by the cost-of-living crisis and inflation.

The BBC said that M2 Capital managing director Robert Mantse confirmed the offer had been accepted.

According to The Guardian, M2 Capital submitted its offer late on Aug. 25, which followed a competing offer by Doug Putman, the owner of music retailer HMV, who pledged to keep 350 Wilko stores open.

"Any bid that guarantees jobs has to be prioritised," said Andy Prendergast of the GMB union.

PwC last week indicated that no buyer had been found for the entire Wilko group, and warned that "significant" redundancies could be expected as early as next week.

The discount retailer, selling cleaning and garden products as well as other small household items, was founded in 1930 with headquarters in the town of Worksop, central England.