Wednesday, 26 November 2008

More bad news for Woolworths employees as shares suspended

EMPLOYMENT fears among dozens of West Somerset shopworkers worsened today with the news that shares in troubled retailer Woolworths have been suspended.
A Woolworths statement said the firm had requested the suspension of trading of its shares on the London Stock Exchange while it continued discussions relating to a potential sale of its retail business.
Woolworths, which has a branch in The Avenue, Minehead, said it was also discussing the possible sale to the BBC of its 40 per cent interest in the 2 Entertain joint venture with BBC Worldwide.
The firm said both sales were subject, among other things, to winning approval from the group’s lending banks.
Restructuring firm Hilco was said to have offered to buy Woolworths for £1, but could not agree how much of the retailer’s £385 million debts it would take on.
Analysts have said Woolworths was likely to go into administration with the loss of 20,000 of its 30,000 jobs unless some kind of a rescue deal could be agreed.

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