MPs have summoned the former bosses and auditor of collapsed retailer, Wilko, to explain why the company went into administration.
The Commons’ business and trade committee has written to Wilko’s former chief executive and chair, as well as accountancy firm EY, to ask about the shortfall in the retailer’s pension fund and the dividends payments it made while it was indebted.
MPs said this week that they wanted to find out more about a £56m shortfall in Wilko’s pension fund and ‘the Wilkinson family’s justification for taking millions of pounds in dividends out of the firm’. Wilko paid its owners £9m in dividends since 2019, according to administrators PwC, and £77m in total dividends to themselves and shareholders in the lead up to its collapse.
The hearing will take place next Tuesday (28 November). GMB trade union’s national officer, Nadine Houghton, commented: “It’s only right Wilko bosses should be forced to explain themselves to MPs. They ignored all warnings about their company’s financial future – lining their own pockets and dishing out millions to shareholders before leaving 10,000 people jobless.”