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Job cuts in Pembrokeshire after £90m Wilko bid fails

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JOB cuts at Wilko’s head office and warehouses are expected to begin this week, including at the two Pembrokeshire stores, after a surprise £90m bid for the discount retailer fell through

It is understood that about a third of the 1,400 staff at the group’s headquarters and distribution centres are to be made redundant after talks with M2 Capital collapsed because a failure to provide proof of funding.

Talks on a rival bid from the HMV owner, Doug Putman, continue. It is understood that he does not want to hold on to Wilko’s back-office function, only the brand and its stores.

Almost 12,500 jobs are at risk after Wilko called in administrators this month as it ran short of cash.

M2 is a little-known Anglo-Canadian finance group that has set up funds to buy hotels and car parts makers but has yet to complete any deals. It is the only bidder that has pledged to take on Wilko’s support staff as well as its shops. However, it has not satisfied administrators that it has the necessary backing to do so.

The private equity firm has reportedly been in discussions about financing the deal with Michael Flacks, an entrepreneur who owns a diverse array of businesses including the US retailer Kelly-Moore Paints, the skin brushing brand Non Nonsense Beauty and the pump maker Aldrich. He once looked at buying the British brand Laura Ashley.

However, Flacks told the Sun he had only heard from M2 this week: “I replied saying I have no interest in Wilko and I don’t back anyone’s business,” he told the newspaper.

In a letter to the chair of M2, Robert Mantse, representatives for Wilko’s administrators at PricewaterhouseCoopers asked for “clarification as to the status of your interest” including “proof and source of funds, which is satisfactory to us” by 5pm on Wednesday.

A source close to the process has questioned the credibility of the M2 bid, which was put forward very late on the final day for offers on Friday and included a 20% stake in the business for employees.

Mantse responded: “Money talks and bullsh*t walks.”

M2 has said it has £150m lined up to support a buyout and turnaround at Wilko.

Putman’s offer does not include the retailer’s head office and warehouse, but would include more than 200 of its 400 shops, possibly protecting up to 10,000 jobs.

The Canadian tycoon’s family also owns Everest Toys, the largest toyand games distribution company in North America, and Toys R Us in Canada. He is expected to combine Wilko’s operations with HMV and his toy business if his bid is successful.

Business

New development planned next to Clynderwen rail station

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PLANS to site public use storage containers close to a Pembrokeshire village’s railway station have been submitted to county planners.

The application by S Fussell, through agent Gethin Beynon, seeks permission to site the 25 containers on an existing storage yard by Clunderwen railway station.

A supporting statement accompanying the application says: “The application seeks permission to site 25 containers to serve as a storage facility for a public use. The application site is located immediately to the north of the Clunderwen railway line and forms an existing storage and laydown yard.”

It adds: “The containers would all be accessed and open from the north elevation. The container frontage would be fenced off via post and rail fencing for security purposes with parking for 9 vehicles being provided. A turning head to the northwest of the site would be provided to provide accessibility to and from the storage compound. In terms of material finishes the containers would be of a conventional rectangular form and be constructed from steel.”

It says the proposal would “have a positive economic and social impact through employment construction via the development,” with minimal environmental impacts, based on the containers being sited in an existing storage and distribution yard, adding: “In terms of the proposal’s scale design and character, the modular form of the containers being adjacent to the railway line are in keeping with the immediate semi-industrial character of the area.”

The application will be considered by planners at a later date.

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Business

Ceredigion sheep shed allowed to stay open as wedding venue

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A CALL to allow a sheep shed once owned by Aberystwyth University to remain as a wedding venue, the applicants even having their own wedding there, has been granted by Ceredigion planners.

Dyfrig and Emily Williams, through agent JMS Planning and Development, sought retrospective planning permission for the change of use of the shed at beef and sheep farm Tanygraig Farm House Tanygraig, Llanfarian, some three miles from Aberystwyth.

The building, part of an agricultural holding once owned and operated by Aberystwyth University as a ‘learning farm,’ was partly converted to host weddings in September 2022.

A supporting statement accompanying the application, by JMS Planning, said: “The proposal seeks to formalise the change of use of an existing agricultural outbuilding to a wedding venue and associated works,” adding: “Prior to the applicant’s ownership, the agricultural holding was owned and operated by Aberystwyth University and utilised as a ‘learning farm’, whereby students would attend site and undertake studies.”

After an initial successful one-off use of the shed as their own wedding venue, the applicants pondered with the idea to keep the shed as a wedding venue.

The statement said no major work has been undertaken at the site, retaining the original character of the building, which is expected to host 15 weddings a year.

“The venue has already hosted a few weddings and has developed an excellent reputation, which is supported by the local community and local businesses many of which have benefited from the venue,” the statement said.

“Jobs, wealth and income has been created as a result of the venue, from initial construction works e.g plumbing and electrical works, to those associated with the wedding industry, which will continue moving forward. The proposal would therefore be considered a source of many jobs, including retaining jobs in existing businesses.

“Although the main occupation of the applicants will remain, they will be heavily involved with the preparation, management and promotion of the business.”

Local community council Llanfarian has raised concerns about the retrospective nature of the application, and about access to the main road for wedding traffic.

The scheme has now been granted conditional approval by Ceredigion planning officers, with conditions including restrictions on amplified music.

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Business

Demand for Welsh homes surges as market sees fastest growth in three years

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THE demand for homes in Wales has risen at the fastest rate since 2021, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. The report reveals a surge in buyer enquiries as more properties enter the market.

In August, a net balance of 50% of survey respondents in Wales reported an increase in new buyer enquiries, marking the highest level of activity seen since May 2021. This uptick in demand coincides with a rise in the number of homes available for sale. A net balance of 57% of Welsh respondents reported an increase in new instructions to sell, a sharp jump from 30% in July.

With both demand and supply on the rise, it is no surprise that sales have also seen an uplift. A net balance of 30% of surveyors in Wales reported an increase in newly agreed sales in August, positioning Wales as the second-highest region in the UK, behind Northern Ireland.

Looking ahead, surveyors remain optimistic about the sales outlook, with a net balance of 12% of Welsh respondents expecting sales to increase over the next three months.

However, house prices in Wales have not followed the same upward trend. Over the last three months, a net balance of -30% of Welsh surveyors reported a fall in home prices, which is lower than the UK average, where prices were reported as flat. Welsh surveyors are also cautious about the near-term price outlook, with a net balance of -22% expecting prices to drop further over the next three months.

In the rental market, demand for lettings continued to rise in August, with 50% of Welsh surveyors reporting an increase in tenant demand. However, the supply of rental properties continued to fall, albeit at a slower rate. A net balance of -17% of respondents noted a decline in rental supply, an improvement from the -33% reported in July. With the imbalance between supply and demand persisting, a net balance of 17% of surveyors expect rents to rise over the coming months.

Anthony Filice, FRICS of Kelvin Francis Ltd. in Cardiff, commented on the sales market, saying: “Appraisals and instructions remain strong. While there are fewer viewers, they are more serious, helped by more favourable mortgage rates. Some sellers with unrealistic pricing expectations are adjusting, leading to sales at lower prices than previously achievable.”

Melfyn Williams, MRICS of Williams & Goodwin The Property People Ltd. in Anglesey, added: “The market is active but not as buoyant as before. Buyers are cautious yet still purchasing, and sellers are concerned but continuing to sell. Activity is down, which is typical for August, but overall, the market remains steady despite seasonal and economic factors.”

In the lettings sector, Paul Lucas, FRICS of R.K. Lucas & Son in Haverfordwest, noted: “Rents continue to rise as the availability of property declines. Many landlords and holiday homeowners are selling due to increased taxation and rental regulation pressures.”

On the wider UK market, RICS Chief Economist Simon Rubinsohn highlighted improved sentiment, noting, “The latest RICS survey shows a lift in buyer interest following a modest fall in mortgage rates, with stock levels also inching up. However, there is still a need for realistic pricing to finalise deals, with uncertainty around future interest rate cuts and the forthcoming Budget keeping market sentiment cautious.”

Rubinsohn added that while affordability remains a challenge in the sales market, it is even more pressing in the lettings sector. “The ongoing reduction in rental stock, as landlords downsize their portfolios, is exacerbating the imbalance in the market.”

As the housing market in Wales continues to evolve, the coming months will determine whether the current surge in demand can sustain momentum amidst broader economic uncertainties.

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