Wilko has shifted to monthly rental payments in a bid to conserve cash heading into the crucial golden quarter. 

Wilko

Wilko blamed the move on the ‘inflation we’re all currently suffering’

The discount retailer has told retailers it will pay its quarterly rent bill in monthly instalments to manage its cash flow in the run-up to Christmas. 

The family-owned retailer blamed the move on “supply chain volatility” and the “inflation we’re all currently suffering”, The Sunday Times reported.

Wilko has also drafted Interpath Advisory to refinance its £37.5m revolving credit facility in a bid to further shore up its balance sheet. 

A deal with lenders is understood to be close. 

Wilko chief executive Jerome Saint-Marc said: “Trading is tough for everybody […] we’re having to make smart choices.”

But he added: “We’re confident in our financial stability and have strong plans for the future. No covenants have been breached on our current facility.”

Wilko is among a number of retailers to have been hit hard by supply chain disruption and rising freight costs and wage bills. 

In its last available financial results, covering the year to January 2021, Wilko registered a pre-tax profit of £4.4m on sales of £1.36bn. It currently operates around 400 stores across the UK. 

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