Wilko has drafted in advisory experts Teneo as it seeks to cut costs across the business in the face of the cost-of-living crisis.

Wilko store front

Wilko has closed 15 stores this year after failing to agree new lease terms

Retail Week understands the embattled value operator is mulling potential cost-cutting and restructuring options as it seeks to shore up its balance sheet.

Wilko has been battered by the cost-of-living crisis, soaring inflation, shipment delays and store closures during the Queen’s funeral, all of which hit its bottom line. 

Property sources suggested Wilko had brought Teneo on board to assess options, including a potential company voluntary arrangement (CVA). However, sources close to the retailer insisted it has no plans to launch a CVA.

The business has struggled this year in the face of rampant inflation and a slump in consumer confidence. Three weeks ago, Wilko drew the ire of some of its suppliers when it changed its payment periods.

The variety retailer informed suppliers that bills due to be paid between September 11 and October 8 would now be made the following month and it had changed its minimum payment period to 60 days.

Wilko said the changes better reflect a shift in the wider retail industry standard from monthly payments to every six weeks. 

The chain has also switched to paying its quarterly rent bills on a monthly basis in a bid to better manage its cash flow during the golden quarter.

Wilko has closed 15 stores so far this year after failing to agree to new lease terms with landlords and drafted in experts from Interpath Advisory to refinance its £37.5m revolving credit facility.

Wilko declined to comment.

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