Homeware retailer Wilko has announced the sale of its Nottinghamshire distribution centre to logistics company DHL for £48 million.

The company said that the move is part of a strategic partnership with DHL, designed to “unlock capital” for the home and garden retailer.

The new partnership comes after multiple sources reported that the retailer brought in restructuring advisor Teneo to look at how it could turnaround its fortunes – suggesting continuing difficulties amid the cost-of-living crisis and lower High Street footfall.

Earlier this year, Wilko shuttered 15 of its stores across the UK. At the time, Saint-Marc told the BBC: “We'll continue to pull together to make our business better to secure the future of over 16,000 team members.”

Wilko said the business refinancing will enable it to improve its proposition and customer experience across its 402 stores and online.

Working in partnership with DHL means both Wilko and DHL will benefit from scale in property and warehousing, the company said.

“It’s standard business practice to constantly review how we manage our finances,” said Wilko chief executive Jerome Saint-Marc. “This property deal with DHL represents long-term stability for us and our team members and is the right response to the current market conditions and our priorities.”

He continued: “We’re making smart choices to trade a business and allow us to continue to invest in our long-term transformational strategy.”

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