Wilko’s former chief executive has said that “the start of Wilko’s problems” might have come with “an enormous mistake” that it made in 2018.
Mark Jackson said: “There was a big loss in 2018/19, which was referred to – and I have to say it’s conjecture – as the start of Wilko’s problems.”
“It bought all of its Far East products in US dollars. It took out forward-rate contracts to fix the price it was buying at, and it made an enormous mistake.
“And there was, I believe, a loss in the region of £40million.”
Mr Jackson, who joined the company in December 2022, also revealed that Wilko came close to finding a rescue deal, but ultimately failed.
READ MORE: Wilko’s ex-boss issues grovelling apology over job losses but takes aim at Truss
He said: “I knew what I was coming into. I came in knowing that the business was in distress and that there was a window of opportunity to turn it around.
“I still think it was a decent opportunity. A number of things went against us. I still think this business should exist and I think somebody should have invested in it.”
He added: “The management team went to around 20 private equity types of investors as well as debt providers, and we got very close.”
Asked why the opportunity was not seized, he said: “Because we couldn’t get the funders to back it. It was pursued; I knocked down an awful lot of doors more than once.
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“We had interested parties right up to the beginning of August who were really keen to save the business and, I thought, still a very good chance of doing so.
“Ultimately, the amount of security in the balance sheet was falling every day… the amount secured lenders were prepared to lend was reducing.”
The revelations come during a business and trade committee hearing on the collapse of Wilko, involving witnesses such as Wilko’s former chair Lisa Wilkinson as well as business minister Kevin Hollinrake.
Wilko collapsed in August leaving 12,000 workers facing redundancy.
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