{"id":9645,"date":"2023-06-18T21:50:36","date_gmt":"2023-06-18T21:50:36","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/wilko-landlords-face-no-rent-for-three-years-as-it-prepares-for-cva\/"},"modified":"2023-06-18T21:50:36","modified_gmt":"2023-06-18T21:50:36","slug":"wilko-landlords-face-no-rent-for-three-years-as-it-prepares-for-cva","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/wilko-landlords-face-no-rent-for-three-years-as-it-prepares-for-cva\/","title":{"rendered":"Wilko landlords face no rent for three years as it prepares for CVA"},"content":{"rendered":"

\"Retail<\/a><\/p>
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\"Wilko\"<\/div>\n
\/\/<\/span> Wilko could pay no rent on some of its stores for the next three years<\/h6>\n
\/\/\u00a0<\/span>The discount chain will launch a CVA next month as it looks to slash rent costs<\/h6>\n\n

Wilko landlords are facing the possibility of receiving no rent for the next three years as the retailer prepares to launch a CVA.<\/p>\n

The struggling value chain, which will launch the restructuring arrangement next month, is looking to cut rents on 240 of its 400 stores, The Times reported.<\/p>\n

The move could result in some landlords receiving no payment until the rent reverts to the contractual amount after three years under the terms of the CVA.<\/p>\n\n

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While Wilko does not plan to close any of its shops, it is likely that some landlords will take back their properties.<\/p>\n

One source close to the process told The Times that the retailer will soon run out of money and could collapse into administration if a CVA is not agreed.<\/p>\n

Wilko hired property agent CBRE last week as it prepared for negotiations with landlords, which are due to begin in the next two weeks.<\/p>\n

The CVA comes as the retailer is in the midst of a turnaround under chief executive Mark Jackson.<\/p>\n

It follows several cost-cutting measures made in recent months, including axing over 400 jobs and scrapping its toy department at the start of the year.<\/p>\n

In January, Wilko secured a\u00a0\u00a340m funding lifeline from Homebase owner Hilco UK after it swung to a \u00a336.8m loss in its last full-year results due to a dip in consumer demand.<\/p>\n

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