This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7751714.stm
The article has changed 16 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Work starts on Woolworths' rescue | Work starts on Woolworths' rescue |
(29 minutes later) | |
Woolworths' administrators have begun efforts to rescue the retailer, after it said its business could no longer operate as a going concern. | Woolworths' administrators have begun efforts to rescue the retailer, after it said its business could no longer operate as a going concern. |
All 815 stores will stay open for now, but 30,000 jobs are at risk after the chain buckled under its £385m debt. | All 815 stores will stay open for now, but 30,000 jobs are at risk after the chain buckled under its £385m debt. |
Deloitte was last night appointed as administrator and says there are "expressions of interest" for the retail and wholesale businesses. | Deloitte was last night appointed as administrator and says there are "expressions of interest" for the retail and wholesale businesses. |
Furniture chain MFI is also going into administration. | Furniture chain MFI is also going into administration. |
'Interest' | 'Interest' |
Deloitte said the search is on a suitable buyer for all parts of the business. | Deloitte said the search is on a suitable buyer for all parts of the business. |
WHAT IS ADMINISTRATION? A rescue mechanism for UK companies in severe trouble. It allows them to continue as a going concern, under supervision, effectively to try to trade out of difficulty. Credit crisis glossary | WHAT IS ADMINISTRATION? A rescue mechanism for UK companies in severe trouble. It allows them to continue as a going concern, under supervision, effectively to try to trade out of difficulty. Credit crisis glossary |
"In the last 24 hours, we have received expressions of interest from a number of parties for both the retail and wholesale businesses," said Dan Butters, who works for the administrator. | "In the last 24 hours, we have received expressions of interest from a number of parties for both the retail and wholesale businesses," said Dan Butters, who works for the administrator. |
The company had tried to sell itself for a nominal price of £1 to Hilco, a restructuring firm, which would take on the firm's debt, but this deal fell through. | The company had tried to sell itself for a nominal price of £1 to Hilco, a restructuring firm, which would take on the firm's debt, but this deal fell through. |
Deloitte said the company would stay open past Christmas and Woolworths' employees in stores will be paid. | Deloitte said the company would stay open past Christmas and Woolworths' employees in stores will be paid. |
Woolworths' 800 stores and four distribution centres employ 25,000 staff while Entertainment UK - which supplies DVDs to supermarket group - employs about 5,000. | Woolworths' 800 stores and four distribution centres employ 25,000 staff while Entertainment UK - which supplies DVDs to supermarket group - employs about 5,000. |
Struggle | Struggle |
The company has had cash flow problems and struggled under the weight of its £385m of debt. | The company has had cash flow problems and struggled under the weight of its £385m of debt. |
WOOLWORTHS FACTS First UK store opened in Liverpool in 1909Has 815 stores across the UKOwns 40% share of publisher 2 EntertainOwns distribution business Entertainment UK What is the point of Woolworths?Read Robert Peston's blog | |
Its problems were compounded over the past couple of months when it was forced to pay cash when buying goods from suppliers, because trade credit insurers were no longer prepared to insure suppliers to Woolworths. | Its problems were compounded over the past couple of months when it was forced to pay cash when buying goods from suppliers, because trade credit insurers were no longer prepared to insure suppliers to Woolworths. |
Woolworths' joint venture with BBC Worldwide - publisher 2 Entertain - will not go into administration as it is owned by Woolworths' parent company. | Woolworths' joint venture with BBC Worldwide - publisher 2 Entertain - will not go into administration as it is owned by Woolworths' parent company. |
Woolworth said that it remained in talks to sell 2 Entertain to the BBC's commercial arm. | Woolworth said that it remained in talks to sell 2 Entertain to the BBC's commercial arm. |
See how Woolworths' shares plunged during the past year | |
Government help? | Government help? |
BBC business editor Robert Peston says that Woolworths has been something of a lame duck retailer for years, losing market share against intense competition. | BBC business editor Robert Peston says that Woolworths has been something of a lame duck retailer for years, losing market share against intense competition. |
The government is unlikely to intervene to prop up a company in such a weak position. | The government is unlikely to intervene to prop up a company in such a weak position. |
"Government policy is not to prop up lame ducks," our correspondent said. | "Government policy is not to prop up lame ducks," our correspondent said. |
The UK's Woolworths has no connection with several retail chains around the world that carry the same name. | The UK's Woolworths has no connection with several retail chains around the world that carry the same name. |
Return to top | Return to top |
Do you work for Woolworths? Are you a shareholder? What are your thoughts on this story? Send us your comments using the form below: | Do you work for Woolworths? Are you a shareholder? What are your thoughts on this story? Send us your comments using the form below: |