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.

Woolworths employees in West Somerset fear for their jobs

DOZENS of shopworkers in Minehead were this week left to fear for their jobs as troubled retailer Woolworths fought to avoid going bust.
Woolworths, which has a branch in The Avenue, Minehead, is said to have been offered for sale for £1 to restructuring firm Hilco.
But it has debts of £385 million and has been holding emergency talks with its two main banks.
Analysts 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.
Minehead is just one of 840 stores in the Woolworths UK portfolio, which also includes a distribution business and a DVD publishing business.
The company’s shares have fallen by 92 per cent in the past year as it suffered record first-half pre-tax losses of £90.8 million in September and scrapped its dividend to shareholders.
Only in August, Woolworths rejected a £50 million takeover bid for its stores from a group headed by the founder of the Iceland frozen food chain, Malcolm Walker.
Woolworths was due to celebrate its trading centenary in 2009.
A statement issued by Woolworths said: “The board can confirm it is in preliminary discussions regarding a possible offer for the retail business. There can be no assurance that any offer will be forthcoming.”