Administrators for cash strapped retail chain Wilko, have announced on Tuesday an agreement to provide Pepco Group (PCO.WA) with the option to acquire up to 71 sites to be opened as Poundland stores has been reached.
The news comes after staff at 124 stores were informed that those outlets would close on, or before, Thursday 21 September.
Pepco Group can acquire up to 71 wilko stores after the administration trading period concludes at those sites.
The 71 stores included in the agreement with Pepco and 51 stores included in an agreement with B&M (BME.L) currently employ more than 3,200 staff members in total.
“Alongside the previously announced agreement with B&M, we’re confident this sale will create a platform for future employment opportunities for people including current Wilko team members at up to 122 locations," said joint administrator Edward Williams.
The sites included in the B&M agreement remain subject to a confidentiality agreement.
Williams said that administrators will continue to engage with other retailers around any interest in other Wilko sites and are confident of completing a sale of the brand in the coming days.
Discount retailer Pepco Group owns the Pepco and Dealz brands in Europe and Poundland in the UK.
The 71 stores will still close before being re-opened as Poundland shops at a later date.
According to Pepco, lease assignments are expected to be completed in early Autumn to enable stores to join Poundland’s existing 800-plus UK stores.
“The agreement to take control of a number of Wilko store leases will help to bring Poundland’s fantastic prices and offer to even more customers in the UK," said Andy Bond, executive chairman of Pepco Group.
He added that there will be an offer of employment to a number of Wilko’s colleagues.
Here's the full list of Wilko shops to be acquired by Poundland owner Pepco:
Hessle Road - Hull
Shrewsbury Darwin Centre