26 Nov 2008
Talks to find a buyer for Woolworths 815 UK stores unsuccessful as the retail arm of the company announce it is to file for administration.
The Woolworths distribution division Entertainment UK will also go into administration, however the group will continue on as its publishing joint venture with BBC Worldwide Bertram Books and 2 Entertain are profitable.
Woolworths shares were suspended at the groups request to assist the ongoing negotiations, the company has around £300m debts.
BBC Worldwide are in talks with the troubled high street retailer about the purchase of the 40% stake in 2 Entertain.
The firm, which employs over A total of 30,000 employees are affected by any outcome, but Woolworths have announced business as usual and that all salaries will be paid on Friday.
Deloitte are to handle the administration of the company.
Woolworths began in 1909 & for many years was one the major retailers on the UK high street. However the out of town retailing parks & the advent of supermarkets squeezed the company, with many feeling it lost its identity in its struggle to keep pace with modern retailing.
Hilco known for restructuring & turn rounds are rumoured to have made an offer of a nominal £1 for the company whilst assuming much of the debt.
It is perhaps indicative of the UK’s internal economic problems when such news is announced & a sad day for the UK high street, with seemingly only the Chancellor & his boss the Prime Minister still in denial.
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