Closure date is confirmed for Woolworths in Minehead

ADMINISTRATORS overseeing the winding-up of the Woolworths chain of stores have confirmed that the Minehead branch will be among the last to close.
Deloitte has published individual dates for the final closure of each of the 807 stores nationwide
Up to 200 are due to close as early of December 27, and all of the remainder will be shut by January 5 at the latest.
The Minehead store, in The Avenue, is among those which will remain trading until January 5.
A countdown poster showing the remaining number of trading days for the store is on display in the shop window.
Woolworths has traded in Minehead since 1937 and the branch employs nearly 30 staff, most of them part-time and some of whom have worked in the store for more than 20 years.
The staff are due to be kept on for an additional three days after the closure before their jobs come to an end along with the other 30,000 Woolworths employees.
Woolworths went into administration in November with debts of £385 million and Deloitte has been unable to find a buyer for the group, although expressions of interest have been made for parts of it.
It is likely that up to 300 of the stores will be reopened by other retailers which want to buy the leases of certain locations, but there has been no confirmation of the future of the Minehead site.
Deloitte partner Neville Kahn said it was unclear how much of the company’s debt would be paid, but it was ‘clear the creditors and suppliers will not get paid in full’.
Woolworths’ staff will be entitled to compensation under the statutory redundancy payment scheme.
Ironically, Woolworths has been enjoying record sales in the past few days as bargain hunters flock to the stores to take advantage of the firm’s biggest ever sale with discounts of up to 50 per cent on offer.
Some trade press reports have suggested former Woolworths chief executive Sir Geoff Mulcahy could be talking with the company’s largest shareholder, Ardeshir Naghshineh, about a last-minute rescue package for the group.
Sir Geoff was earlier critical of the way Deloittehad handled Woolworths, describing it as ‘disgraceful’.
It was also suggest Mr Naghshineh had approached the Government about the possibility of bailout funding to save Woolworths.
The shopworkers’ union Usdaw has also criticised Deloitte’s decision to close all the stores and make staff redundant without allowing them an opportunity to transfer to any news owners who may purchase individual store leases.

Woolworths asked to protect Minehead jobs over Christmas

WOOLWORTHS was reported this evening to be going into administration, putting 30,000 jobs under threat in more than 800 stores, including in Minehead.
Accountancy consultants Deloitte was being appointed as administrators to the company, which would have celebrated its centenary in 2009.
A spokeswoman said Minehead and the other stores would remain open and keep trading for the time being.
Money had been ring-fenced to ensure staff would be paid as normal on Friday.
It was understood that Woolworths had been asked to do what it could to protect its pension fund, and to keep the stores open if possible during over Christmas.
Woolworths had £385 million of debt and had been in ongoing discussions with its two main bankers.
Usdaw, the shopworkers’ union, called the collapse of Woolworths ‘devastating for staff’.
A spokesman said: “We were hopeful that a last minute deal would be done and will want to meet with the administrators as soon as possible.”

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.”