Wilko £40m credit facility amended to ‘shore up finances’

The terms of a £40 million credit facility Wilko received earlier this year have reportedly been amended to “bolster the availability of financing” for the struggling discount retailer.

According to Sky News, specialist retail investor Hilco Capital, which also owns DIY chain Homebase, has agreed to amend the terms of the credit facility to bolster the availability of financing to Wilko as it continues to experience cashflow issues.

Last week the news outlet reported that the Wilkinson family, who established Wilko in 1930, were mulling a change of ownership for the first times as it faces running out of money “within weeks”.

Wilko chief executive Mark Jackson recently said: "We've been very open that we're exploring all the options available to rebound as a business and maximise the significant opportunities that we know exist.”

To shore up its finances, Wilko recently entered a voluntary insolvency process known as a company voluntary agreement (CVA), with sources telling Sky News the discount retailer would likely focus the arrangement on slashing rent costs opposed to shuttering up to 400 of its stores across the UK.

Late last year the company sold its Nottinghamshire distribution centre to logistics company DHL for £48 million.

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