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// Wilko has told landlords it will pay rent each month rather than quarterly
// Wilko attributed the move to “supply-chain volatility” and the “inflation we’re all currently suffering”
Wilko is changing its schedule of rent payments in a bid to conserve cash, as the ongoing cost-of-living crisis intensifies.
According to The Sunday Times, the family-owned discounter has warned landlords that it will be paying its quarterly rent bill in monthly instalments to manage cashflow as it stocks up for Christmas.
As a result, Wilko attributed the move to “supply-chain volatility” and the “inflation we’re all currently suffering”.
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This follows Wilko working with debt advisors from Interpath Advisory on a refinancing of its £37.5 million revolving credit facility.
According to a source close to the talks an agreement with the discounters lenders “was close”.
“Trading is tough for everybody … we’re having to make smart choices,” Wilko chief executive Jerome Saint-Marc told The Times.
“We’re confident in our financial stability and have strong plans for the future. No covenants have been breached on our current facility.”
In the year to January 2021, Wilko reported pre-tax profits of £4.4 million on sales of £1.36 billion, however, this year it suffered from supply-chain disruption, high freight and increasing wage bills.
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