Forums Forums National News Administrators pledge of Woolworths

ADMINISTRATORS today promised all Woolworths’ stores will trade beyond Christmas and staff will be paid.

The promise came from Deloitte which was appointed by the stricken chain today.

The iconic brand, which opened its first store in Liverpool in 1909, operates some 840 UK sites including 15 on Merseyside.

It employs 25,000 people.

Directors decided to put the retail and distribution arm into administration at a 6pm board meeting last night after failing to agree a rescue deal with restructuring specialist Hilco.

Deloitte hired Hilco today to assist it in managing the company.

Administrators said they would try to sell all parts of the business and had already received expressions of interest.

Almost 1,500 jobs are also at risk at furniture chain MFI after bosses filed for administration late yesterday.

Deloitte’s Neville Kahn said today: “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.”

Woolworths’ shares were suspended yesterday morning. Its debts are believed to be about £385m.

Woolworths should be brought Woolworth in Amercia seeing as our woolworths has nothing to do with it.. he could benefit ?

Woolworths is shite nowadays anyway, the stores are lower quality then discount retailers such as Home Bargains and Poundland etc...

I remember years ago, when I was a wee nipper, all the Woolies were full of toys etc, as good as Toys R Us almost, but now it seems more than half the shopfloors are dedicated to selling DVD's and CD's, I mean come on, they are moving into a declining industry (audio CD's especially being hit by online downloads) and trying to make more and more money from it, and it simply isnt going to happen.

They need to re-establish a route to take, either become a discount store, or refurbish the stores and become a toy's and housewares store, small range of clothes etc and half the floorspace they give to DVD's, video games, music CD's etc...

All the staff are friendly enough, it just isnt Woolies as I remember it.

woolies will start a store closing sale tomoz! the place to go man.

Dunno if you have been recently, but most of the stock is already gone im afraid mate.

All the best things are out of stock, half the shelves are empty, it's only the tat thats left.

Woolworths has died me thinks.. no one is intrested in buying it cause it has so much debt on its hands. But what i cant understand is how did it get into so much debt..

I've been listening to 5 live and people have been phoning in saying today's closing down sale is no different from the prices they charged yesterday. They are conning people by putting posters int he window saying 'up to 50% off'. I'll bet the 'up to' is tiny.

The first shops will shut on 27 December and all 27,000 permanent and temporary staff will lose their jobs if no last-minute buyer is found.

The administrators said there was still interest in parts of the business but admitted they had "not come close" to finding a buyer for the firm.

A range of food, clothes and "value retailers" have made offers to take over the leases at about 300 stores.

And efforts would be made to put Woolworths staff who were losing their jobs in contact with these potential employers, the administrators Deloitte said.

Deloitte's Neville Kahn said it was unclear how much of its debts would be paid, but added it was "clear that the creditors and suppliers will not get paid in full".

Countdown



Shoppers react to the closure of Woolworths
Last week bargain hunters began flocking to branches of Woolworths on the first day of a store closure sale at all its outlets across the country.

Among the stock still on sale were 200,000 copies of X-Factor winner Alexandra Burke's version of Hallelujah, the administrators said.

Mr Kahn added that an extra 50 million items would be delivered to Woolworths stores and bigger discounts - some of more than 60% - would be offered to shift stock.

Shop windows will also display a countdown showing how many days were left before the store closed, he added.

Staff - who will be entitled to compensation under the statutory redundancy payment scheme - will be retained for a few days following store closures.

The chain was forced to call in administrators three weeks ago, amid mounting debts and losses.

Last week its distribution arm, Entertainment UK, made 700 staff redundant after failing to find a buyer for the business.

The company delivered up to 30% of music CDs in the UK, as well as film and TV DVDs.

I think something will happen last minute - buyers are just waiting to get the best deal...

"Asda is planning to buy some stores from Woolworths, it has been claimed, although chief executive Andy Bond refused to confirm the speculation.

Daily Telegraph editor-at-large Jeff Randall said the shops offer Asda "the opportunity" it had been looking for over the last few years.

Bond told Randall's Sky News programme that the company is looking to expand further, but added: "I obviously wouldn't comment on particular speculation about Woolworths."

Randall said: "I know Asda is to buy Woolworths' stores. It has been trying to expand in the UK for years but always runs up against planning problems."

Discount retailers are also interested in the struggling retailer.

Lidl PR and marketing manager Marco Ivone said: "We are looking at some stores on an individual basis."

Yesterday, it emerged that Dragon's Den entrepreneur Theo Paphitis wants to purchase some Woolworths' stores.

The company went into administration last week, putting 25,000 jobs at risk."

Source: http://www.talkingretail.com/news/industry-news/11639-asda-wants-woolworths-stores.html

Its a sad case of affairs i went in woolworths today and walked uot the place is an utter mess it hasnt been cleaned the shelves are just full of old stock and none of the workers care its very sad..

No different than it normally is then !

Pick and mix been on the floor twice then?

WOOLWORTHS stores in Birkenhead, New Ferry and Liscard will close on December 27, administrators for the ailing firm have announced.

Deloitte said all 807 Woolworths stores would close by January 5, with the first 200 on December 27. The remaining stores will shut on January 2 and January 5.

Woolworths currently employs 22,000 permanent members of staff and 5,000 temporary and seasonal staff, who will be retained for a period following the store closures.

Negotiations for the sale of the Woolworths retail business as a going concern are continuing, but have not yet resulted in a buyer being found.

The Administrators revealed that over 300 of the stores are under offer from a range of third parties, and said there was "considerable interest" in the other 500 stores.

Neville Kahn, Joint Administrator, said: "Whilst negotiations for the sale of Woolworths' retail arm remain ongoing, and we continue to speak to new interested parties, regrettably we have had to begin a store closure programme.

"We are extremely grateful to the staff and management for their support throughout this difficult time.

"We are confident that we will sell the leases of the 300 stores currently under offer and are hopeful that our ongoing discussions with other parties will also prove successful."

me bro works in the one in the ferry he is not happy dude

Date confirmed......... Saturday 27th December.. Birkenhead Woolworths closed.. They are selling everything down to the used mops seriously to there CCTV equipment!!!

im glad because they were really poo, makes room for a new and better store

Id love it to be a maplins you know where id go

here here

Woolworths stores that were expected to close on Friday will remain open for another day of business, administrators Deloitte said.

Two hundred outlets were due to shut on Friday but this has been postponed to Saturday.

The final closure deadline for the retailer has also been delayed by a day, with the remaining 200 stores now set to close on January 6.

A spokesman for Deloitte said: "There are two main reasons for delaying the closures. One, stock levels - there's still some stock remaining. Two, workload - it's a big logistical exercise. The remaining dates were delayed to allow time for the final arrangements to be made."

More than half the UK stores have already shut down. At least 150 of the retailer's 807 outlets held their last day of trading on December 30, with everything, including the fixtures and fittings, on sale at discount prices.

The firm's collapse leaves 27,000 workers facing redundancy.

FW Woolworths first came to the UK in 1909, when the American firm opened a branch in Liverpool.

Everything in the Merseyside store was sold for sixpence (2.5p), making it an instant hit and the company quickly expanded.

The chain, which outlived its US parent by more than 10 years, was already foundering when the credit crunch and sharp downturn in consumer spending finally toppled it in November.

Deloitte has held talks with other retailers to take on the leases of around 300 Woolworths stores and hopes to sell off the Ladybird children's clothes and Chad Valley toys brands.