The founding family of Wilko is facing backlash after announcing they have no plans to address the company’s £70 million pension deficit.
The discount retailer’s collapse last year led to the closure of 400 stores and over 12,000 job losses, leaving a substantial pension shortfall that affects more than a thousand workers who have yet to retire.
Dividend Withdrawals Amid Rising Debts
Despite Wilko’s £625 million in debts, the Wilkinson family withdrew £77 million in dividends over the past decade. Amalgamated Holdings Wilkinson Limited (AHWL), Wilko’s parent company, stated last week it does not believe it has any obligation to fill the pension gap.
The company claimed that it was never the sponsoring employer for Wilko’s pension scheme and had not provided any guarantees.
Public Outcry and Political Criticism
The family’s stance has ignited public outrage, with many accusing them of embodying “the unacceptable face of capitalism.” Lord Mann, a former Labour MP, strongly criticized the family, asserting that their legacy of a successful business has been “destroyed in a frenzy of greed.” He also pointed out the inadequacy of current laws in addressing such situations.
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Union and Expert Reactions
GMB union national officer Nadine condemned the Wilkinson family’s refusal to take responsibility, calling it “an absolute disgrace.” Additionally, Dr. Gordon Fletcher of Salford University Business School noted that businessman Sir Philip Green contributed £363 million to the BHS pension fund two years after its collapse in 2016, setting a precedent that many now urge the Wilkinson family to follow.
Pension Protection Fund Review
The Wilko pension fund is currently under review by the Pension Protection Fund, which may step in to cover the deficit. However, experts highlight that there is a precedent for company owners to take responsibility for filling pension shortfalls themselves, adding pressure on the Wilkinson family to address the issue.
