Interest in Woolworths despite job fears

SEVERAL “expressions of interest” have been made in ailing high street name Woolworths, one of the Yorkshire-based administrators acting for the household retailer has confirmed.

Dan Butters, reorganisation services partner at Deloitte in Leeds, has been appointed joint administrator to Woolworths, and Entertainment UK, the wholesale division of Woolworths, with Neville Kahn and Nick Dargan.

Mr Butters said: “We will be looking for a suitable buyer for all parts of the business. In the last 24 hours we have received expressions of interest from a number of parties for both the retail and wholesale businesses. 

“We are working hard to ensure that any sale of the business, in whole or part, will preserve jobs.”

The collapse of Woolworths has thrown uncertainty over the future of the retailer’s 30,000 staff, many of whom are employed in Yorkshire.

Woolworths’ 813 stores account for the lion’s share of the group’s staff, with around 25,000 employees. Deloitte said the 99-year-old retailer will be kept open for business.

The retail arm of the company operates out of some 800 high street stores and four distribution centres, employing 25,000 staff. E.UK is the UK’s leading distributor of entertainment products.

Mr Kahn, reorganisation services partner at Deloitte, said: “Woolworths has suffered a number of cash flow problems. Strenuous efforts over recent weeks to keep these companies going have unfortunately failed and the businesses are now looking to be rescued under the administration process.

“Stores will remain open past Christmas and employees in stores will be paid. We have mobilised a large Deloitte team to stabilise the business and have hired Hilco as our agent to assist in the management of the retail business.

“We appreciate the cooperation and support from the management and staff at both companies. We are glad that arrangements are in place to ensure that all wages will be paid in full this week.”