LONDON, United Kingdom—Private equity firm M2 Capital has made an offer to take over British household goods company Wilko, according to media reports Sunday, days after administrators warned of “likely” redundancies and store closures.
London-based M2 Capital has made a bid of £90 million ($113 million, 105 million euros) 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 on Sunday that M2 Capital managing director Robert Mantse confirmed the offer had been accepted.
M2 Capital did not respond to AFP’s request for comment.
According to The Guardian, M2 Capital submitted its offer late Friday, 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 prioritized,” said Andy Prendergast of the GMB union.
“Since our appointment as administrators of Wilko we have worked relentlessly to secure a sale of the business, and talks are continuing with a number of parties,” a PwC spokesman told AFP on Sunday, declining to comment on any specific offers.
PwC on Wednesday 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.