DOUBTS have grown about the credibility of Wilko’s rescue after a British entrepreneur reportedly funding a bid rubbished the claims last night and said he had no interest.
M2 Capital, a private equity firm fronted by Robert Mentse, a former metals and mining banker, had been given a deadline today by Wilko’s administrators to show it had proof of funding for a rescue.
GettyM2 Capital has asked for a two day extension as it weighs up its bid for Wilko[/caption]
Michael Flacks, who runs investment firm Flacks Group from Miami, has been reported as being in financing discussions with M2 Capital.
However, now The Sun can reveal that the supposed source of the funds had no awareness of the situation.
Mr Flacks said that he had only received an email in the early hours of Wednesday morning asking him to “back a deal” with M2 Capital.
Mr Flacks told The Sun: “I replied saying I have no interest in Wilko and I don’t back anyone’s business. I was therefore baffled to see the articles in today’s press.
“I am not interested in Wilko, I believe it should have died years ago. It needs to die.
“There are plenty of other amazing retailers out there like B&M and Home Bargains.
“The absence on the high street will be quickly filled. It doesn’t provide post offices or anything of critical social infrastructure.
“Change is good. And of those 12,500 jobs I can guarantee 10,500 will walk into another job. They will be reabsorbed by the sector.”
The tycoon had previously attempted to buy Laura Ashley, the floral and furnishings retailer, and now owns investments ranging from America’s second biggest paint brand, Kelly-Moore, to pump manufacturer Pleuger.
Mr Flack’s denial that he will provide financing will undoubtedly heap further scrutiny on M2 Capital’s claims it can save the entire Wilko business.
Administrators at PwC have been sceptical about the credibility of M2 Capital, which had resisted several requests to show proof of funds or a business plan for Wilko.
PwC had given M2 Capital a deadline of 5pm yesterday to provide the basic necessary documents to be taken as a serious buyer.
Sources told The Sun that there was a call between both sides yesterday morning, which led to the firm being given access to Wilko’s “data room” – a term given to a virtual treasure trove of financial documents in deals.
Sources said M2 Capital has asked for a further two days to review the terms of Wilko’s 400 shop leases.
A source said that PwC had not ruled them out of the process and talks are still ongoing.
It will mean the second time a deadline for Wilko buyers has passed, almost three weeks after the retailer went bust.
Around 12,500 jobs are hanging in the balance with administrators warning there will likely be redundancies if a buyer for the entire business is not found.
The GMB union said last night that while there were “bids on the table for a significant proportion of the stores and the online business, we still cannot guarantee the future of any jobs moving forwards at this point.”
The private equity firm is competing with rival interest from HMV owner Doug Putman and offers from discount chains Poundland, B&M Bargains and The Range to buy some of Wilko’s stores.
GettySome 12,500 Wilko employees are eagerly waiting to here news of a possible sale of the retailer[/caption]