{"id":11094,"date":"2023-12-01T07:59:34","date_gmt":"2023-12-01T07:59:34","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/wilko-regulators-urged-to-try-and-claw-back-millions-in-dividends\/"},"modified":"2023-12-01T07:59:34","modified_gmt":"2023-12-01T07:59:34","slug":"wilko-regulators-urged-to-try-and-claw-back-millions-in-dividends","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/wilko-regulators-urged-to-try-and-claw-back-millions-in-dividends\/","title":{"rendered":"Wilko: Regulators urged to try and ‘claw back’ millions in dividends"},"content":{"rendered":"

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Wilko\u2019s founding family should be pursued for the recovery of millions in dividends received before the retailer\u2019s collapse in August, urged the chair of the Commons business and trade committee, emphasizing the need for UK regulators to \u201cexplore every option.\u201d<\/p>\n

Labour MP Liam Byrne made the call for regulatory action in the Commons yesterday after former Wilko chair and the granddaughter of its founder Lisa Wilkinson was grilled by cross-party committee over Wilko\u2019s collapse, which followed \u00a315m in payouts to family trusts over almost a decade.<\/p>\n

Wilko\u2019s collapsed into administration back in August led to\u00a0400 store closures and 12,000 job losses.<\/p>\n

After its collapse the business left its pension fund nursing a \u00a350m black hole, also owing about \u00a3625m in debts.<\/p>\n\n

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In the House of Commons, Byrne said: \u201cOn Tuesday we finally had answers from Lisa Wilkinson about the mistakes that led to the collapse at that much-loved firm.\u201d<\/p>\n

\u201cBut Miss Wilkinson was not able to answer why 70% of the profits in the last four years were paid out in dividends\u00a0<\/strong>to family trusts, while the deficit in the pension fund mounted, to now \u00a350m.<\/p>\n

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On Tuesday we learned that 70% of the Wilko profits were paid out in dividends \u2013 while the pension fund was shortchanged.<\/p>\n

Today I asked Ministers to look at how those dividends are repaid to Wilko\u2019s pensioners \ud83d\udc47#wilko<\/a> @GMB_union<\/a> pic.twitter.com\/OaDE5kZcbT<\/a><\/p>\n

\u2014 Liam Byrne MP (@liambyrnemp) November 30, 2023<\/a><\/p>\n<\/blockquote>\n

\u00a0\u201cWill the secretary of state ensure that regulators explore every option to claw back those dividends so that Wilko pensioners are not short-changed?\u201d Byrne asked.<\/p>\n

Wilkinson told the business and trade committee on Tuesday that the \u00a315m in dividends paid out to shareholders in the past nine years were in a holding company owned by family trusts and tied up in investments that were difficult to access.<\/p>\n

She claimed it would not have been possible to use that cash to help cut Wilko\u2019s pension deficit because of a duty to shareholders.<\/p>\n

She also denied having used the dividends to pay herself in a \u201cpersonal capacity\u201d, and said the family did not have enough funds \u201cto make a difference\u201d in the retailer\u2019s eventual collapse.<\/p>\n

\u201cI don\u2019t recognize that statement that we are one of the wealthiest families in the country and I don\u2019t have assets to fill a \u00a350m hole in the pension scheme,\u201d she said.<\/p>\n

In response to Byrne\u2019s statement, business minister Kevin Hollinrake, said: \u201cClearly, the insolvency service is looking at this, is looking at the director\u2019s conduct report from PricewaterhouseCoopers, the administrators.<\/p>\n

She added that it was clear in the report so far \u201cthey have no evidence of director misconduct, but there\u2019s further work ongoing.\u201d<\/p>\n

The Insolvency Service is due to meet the administrators PwC in January to look at the situation as it unfolds.<\/p>\n

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