Closing-down of Woolworths
Thursday, December 11, 2008 8:32
After Deloitte, the administrator, admitted that it had been unable to find a buyer for the retailer, the Woolworths Group will begin a huge closing-down sale across its 813 stores. The disappearance of the stores group will end a 99-year presence on UK’s high streets and leave 30000 employees facing a bleak Christmas and new year.
Deloitte will pay the employees at the stores till Christmas Day, a warning was given that some shops may have to close as soon as Boxing Day. The accountant will inform the employees in Woolworths about their fate while the seeking bids from interested parties to take a rump of several hundred stores. The stores group is expected to be broken up and sold to its rivals such as Tesco, Waitrose, Iceland and Poundland in small batches and they would not need to keep on Woolworths’ employees. However, as Woolworths are usually owned by a large number of freeholders, many of whom hold individual stores in their pension funds, the attempts to sell on a rump of Woolworths stores have also been hampered by this complex ownership structure of the properties. The administrator is facing a huge logistical challenge in coralling hundreds of invidual owners.
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