High street retailer Wilko informed suppliers in a letter, saying it would focus on its heritage of selling garden and household goods.
Wilko has announced in a letter to suppliers that it is to stop stocking toys in its stores but has offered some reassurance that it will offer seasonal/outdoor toys at the relevant time of the year.
The news follows an announcement in October that the company had called in advisers as it explored cost-cutting and restructuring options in an effort to improve its balance sheet. Advisers from Teneo were engaged to assess options for the retailer.
Factors including rising inflation, delivery delays, supply challenges and store closures during the Queen’s funeral have all combined to affect Wilko’s business.
Earlier last year, Wilko brought in experts from Interpath Advisory to refinance its £37.5m revolving credit facility earlier and last year had closed 15 stores prior to the October announcement.
The letter states:
As part of our long term strategic direction, we have taken the decision to focus on our heritage as a household and garden retailer.
The result of this focus is that we have reviewed the product categories we want to be famous for, and have taken the decision to discontinue providing an all year round toy offer in our stores.
We will, however, continue to provide our customer with seasonal/outdoor toys at the relevant time of year.
We would like to thank you for support and wish you success in the future.
An official announcement has yet to be made by Wilko.