Nearly 10,000 former Wilko staff have been paid more than £42 million by the Government’s Insolvency Service following the collapse of the high street retailer.
The government agency has covered redundancy pay and statutory notice pay owed to employees affected by the collapse of the 93-year-old chain, which was headquartered in Worksop, Notts. Some 9,800 payments have been made so far, with each claim processed and paid within 24 hours on average.
The discount hardware and furnishings chain had 400 stores across the UK when it fell into administration in August, having come under pressure from weaker consumer spending and debts owed to suppliers.
The collapse saw almost all of Wilko’s 12,500 workers being made redundant.
Handled by its Redundancy Payments Service (RPS), the Insolvency Service said it began preparing for claims when Wilko first called in administrators, despite hopes that it would find a buyer.
When it failed to secure a rescue deal, the administrators sold off a raft of the company’s assets, including up to 71 stores to Poundland and up to 51 shops to rival discounter B&M. Neither deal not automatically included staff.
Rob Graham, senior operations manager for the RPS, said: “The whole RPS team has been working around the clock to make payments to former Wilko employees as quickly as possible.
“We know how difficult it is for former employees at times like these.”
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Wilko paid all its former employees any wages they were owed, as well as holiday pay, overtime or commission that was due at the time it went into administration.
But it was able to claim money for redundancy and notice pay from the RPS, which distributes money held in the Government’s National Insurance Fund.
Meanwhile, the bosses of Wilko will appear before MPs this week to answer questions over its collapse and a £50 million shortfall in its pension fund.
The GMB union suggested that taxpayers were subsidising “more than a decade of mismanagement”.
GMB national officer Nadine Houghton said: “The hard truth is that taxpayers are subsidising more than a decade of mismanagement at Wilko that condemned the much-loved chain to failure.
“Answers are long overdue, and Wilko's former management must account for their record when they face MPs…”
She urged any former Wilko staff who are entitled to a claim to contact the RPS but said it was “shameful” that former Wilko workers with under two-year’s service are denied even statutory redundancy support.