Wilko appoints chief executive with wide restructuring experience

UK retail chain Wilko has appointed a new chief executive with extensive restructuring experience as talks continue over a refinancing to secure its future.

The family-owned group said Mark Jackson would join the business as chief executive designate. He is at present chief executive of Bensons for Beds, a furniture retailer that was acquired by private equity firm Alteri in 2020.

Following an administration process last year, under which Alteri retained Bensons but closed down sister company Harveys, the business is now back in profit.

Jackson was previously chief financial officer of the UK arm of Steinhoff International, the South African conglomerate that came close to collapse after accounting fraud was discovered in 2017.

Wilko’s current chief executive, Jerome Saint-Marc, will step down with immediate effect. He has run the business since February 2020, having previously been group transformation director. Wilko attracted criticism over the company’s self-isolation policies during the pandemic.

Lisa Wilkinson, the family representative on the board of Wilko’s holding company, said the company’s founders “would expect us to make the right, and sometimes difficult, changes to restore confidence and safeguard the future of the business”.

“That includes making sure we have the right leadership in place with the right experience and relevant turnround expertise.”

Jackson’s appointment comes as Wilko looks to safeguard its future by putting in place new credit facilities rather than relying on supplier financing and short-term overdrafts.

The company’s recent annual accounts were accompanied by a “going concern” warning in which it stated there was a risk of it running out of cash by the end of 2023 if trading conditions deteriorated further and it did not secure access to credit.

Nottinghamshire-based Wilko, whose sales mix is tilted towards homeware, garden and DIY products, said it regarded the scenario as unlikely and had £63mn of cash in November, but has opened talks with lenders.

Banks have become less enthusiastic about lending to retailers given their low margins and the difficult economic backdrop. Reduced trade credit insurance — which insures suppliers against default by their customers — has also made it harder for less well-capitalised retailers to rely on supplier credit.

The gap has been filled by specialist lenders who charge higher interest rates. Bantry Bay recently agreed a £60mn facility with Matalan, another value retailer, in return for a “super-senior” ranking in the company’s capital structure, and clothing brand Superdry is also in talks over such a facility.

Made.com, a furniture retailer that relied heavily on supplier credit rather than bank lending, collapsed into administration in November after failing to secure new financial backing.