Iceland moves to turn Woolworths into frozen food store

THE now-closed Woolworths store in Minehead is to be reopened as a branch of the Iceland frozen food chain.
The property, in The Avenue, is among 51 former Woolworths stores which are being bought nationwide by Iceland, and one of only two in Somerset, the other being in Frome.
Iceland said it planned to create 2,500 new jobs across the country – as against the 27,000 jobs which were lost when the last of 807 Woolworths stores was shut on Tuesday.
The Minehead Woolworths was in the final batch of stores which remained open until the very end.
Woolworths had traded in Minehead since 1937 and had nearly 30 staff at the premises, some of whom had worked there for more than 20 years.
The staff are understood to have been offered an opportunity to move across to Iceland as their new employer.
An Iceland spokesman said: “We are confident we can help to support the local community in these towns who have lost a major High Street retailer in Woolworths.”
Woolworths went into administration with debts of £385 million in November and administrators Deloite were unable to find a buyer to take over the chain.
Iceland, which already has 682 stores, previously offered to buy all of the Woolworths chain last summer but the bid was rejected as ‘unacceptable’.
The frozen food retail business was founded in 1970 and was taken over by a consortium led by Icelandic investment group Baugur in 2005.

The firm already has stores in Taunton, Bridgwater, and Barnstaple.

Extra day for Woolworths to sell off stock before closure

STAFF in the Minehead branch of Woolworths have been given a 24-hour reprieve on the store’s closure.
The shop, where prices have been slashed to mere pennies during a closing down sale, was last night due to be among the final 200 to close their doors to the public for the last time.
But administrators Deloitte said it was allowing the stores to remain open for an extra day in an effort to sell off the last of its stock - and even fixtures and fittings if people would buy them.
Deloitte said the additional day’s trading would also allow more time to make ‘final arrangements’ for winding up the business.
Woolworths went into administration in November with debts of £385 million and efforts by Deloitte to find a buyer came to nothing.
More than half of the 807 stores nationwide have already closed, and the Minehead store is in the final batch to be shut.
Woolworths, which has nearly 30 staff in Minehead, first opened in the town in 1937.
All 27,000 remaining Woolworths employees nationwide will be made redundant after the closures.
Deloitte has been in talks with other retail chains with a view to selling the leases on some of the Woolworths premises, and rumours have surfaced in Minehead of a clothing company showing an interest in the store once it has shut.

Recession in 2009 could 'devastate' town's shopping centre

THE shopping centre of Minehead could be 'devastated' as the recession claims more retail victims in 2009.
Insolvency experts have warned that more than 10 national or regional retail chains risk going bust during January alone - on top of those which have already gone into administration.
And locally, The Post has been told of up to five Minehead town centre outlets which could soon be lost - not including Woolworths, which will close on January 5.
The gloomy news comes on top of predictions that unemployment nationally will hit three million this year.
Nick Hood, a partner in Begbies Traynor, the UK’s leading business rescue, recovery, and restructuring specialist, said few retailers would have made profits during the Christmas trading period because of discounting.
The profits made at this time of year often helped retailers stay afloat for the rest of the year.
But Mr Hood said: “The problem facing the management of retail chains is whether they can find funding to restock in January, pay their VAT bills, and survive through until Christmas starts again next October.”
He said retailers now faced the danger that banks and suppliers which were prepared to support them over Christmas might no longer be willing to do so.
Retailers were also particularly vulnerable in January because they often had more cash and less stock than at any other time of the year, so it was a prime time for creditors to force them into administration.
Although The Post has names of local branches of retailers supposedly ‘at risk’, we have decided not to publish them.
Locally, Minehead Chamber of Commerce has urged West Somerset residents to shop locally and support traders.
Chamber spokesman Graham Sizer said every pound spent in local shops would circulate several times before the money was taken out of the area.

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.

Last rites administered for Woolworths jobs

THERE will be no Christmas cheer for staff of Woolworths’ in Minehead as the town’s store is set to close in the next three weeks, according to the company’s administrators.
Deloitte said today that failing a last-minute purchase of the firm, all 807 Woolworths stores around the country will close by January 5.
The first stores will start to close on December 27, with all 30,000 employees eventually losing their jobs.
Neville Kahn, a partner in administrators Deloitte, said some interest had been shown in parts of the business but the administrators were not even close to finding a buyer for the company outright.
Offers to take over the leases of around 300 Woolworths stores had been received from a range of food, clothes and ‘value retailers’, and Deloitte said it would try to ensure those losing their jobs were put in touch with the potential new employers.
Mr Khan said staff would be paid until the end of the month, after which they would need to apply for statutory redundancy.
He said: “It is a very difficult situation for people, particularly the employees, and we are trying to deal with it in as sensible a way as possible.”
Last week, Woolworths saw record sales as it began a closing down sale with up to 50 per cent off items - its largest ever sale.
And even larger discounts of more than 60 per cent are being planned in order to shift remaining stock.
The Minehead store will display a countdown in its shop window showing how many days were left before it closed.
Following the closure, some of the Minehead staff will be retained for a few days before their jobs go.
Woolworths went into administration three weeks ago with debts of £385 million.
Millionaire entrepreneur Theo Paphitis, one of the stars of BBC television’s Dragon’s Den series, initially showed an interest in buying the company but quickly pulled out of any deal.

Prices slashed in Woolies sale as Dragon pulls out of rescue bid

MILLIONAIRE entrepreneur Theo Paphitis has pulled out of a possible deal which could have saved the jobs of employees of the Minehead branch of Woolworths.
The troubled retailer went into administration last week with debts of £385 million and receivers Deloitte was immediately approached with several inquiries about purchasing the chain.
Mr Paphitis, a star of the BBC Dragon’s Den television programme, was said to be interested in bidding for some of the more profitable Woolies stores and maintaining the Woolworths brand.
However, the Dragon has now pulled out and said in a statement: “Unfortunately, the constituent parts of Woolworths are more valuable than the whole.
“The administrators have a difficult job to do and I appreciate they need to get the highest cash value for the business.
“I hope that an alternative proposal succeeds in securing the future for the many Woolworths employees involved.”
Mr Paphitis has previously revived troubled brands such as La Senza and the stationary chain Rymans.
His withdrawal leaves the future of 30,000 Woolworths jobs in doubt, although Deloitte said the stores would continue throughout the Christmas period and money had been ring fenced to pay salaries.
It is now expected that most of the stores will be sold in small groups to a number of different bidders.
The deadline for bids for single or small groups of stores was 4 pm on Wednesday.
Supermarket firms Tesco, Sainsbury’s, Asda, Waitrose, the Co-op, and discount chain Poundland were all said to be interested in some of Woolworths’ prime high street locations.
The largest shareholder in Woolworths, Ardeshir Naghshineh, was also reported to be preparing a bid for the company.
Woolworths will tomorrow start its ‘biggest ever’ sale in an effort to shift large volumes of stock, slashing prices by up to 50 per cent across its product range.
Deloitte partner Neville Kahn said: “We anticipate increased footfall in the stores and have hired additional staff to cope with increased demand.
“Additional goods have been moved to all stores and further stock will be added in the coming days.”
Woolworths Group, which has a 40 per cent stake in 2Entertain, a joint publishing venture with the BBC, is also likely to be placed into administration.

Dragon's Den star Theo gives hope to Woolies staff

BBC Dragon’s Den star Theo Paphitis (pictured) may launch a buyout of Woolworths which could save the jobs of dozens of workers in the company’s Minehead store.
Woolworths went into administration last week with £385 million of debt, but administrators Deloitte said it was hopeful of finding a buyer for the chain, which has 30,000 employees and 815 stores.
Mr Paphitis is said to be one of several people showing ‘substantial interest’ in the firm.
The millionaire businessman said in a statement: “If we were successful in our negotiations, then it would be my priority to safeguard the future of as many of the employees as possible.
“I would want to keep the Woolworths name alive as it is held with such deep affection, and I would of course want to keep trading as many of the high street stores as possible.”
Mr Paphitis said a speedy resolution was ‘absolutely crucial’ to keeping Woolworths together.
“I have a great belief in the Woolworths brand and would love to see the name remain on the high street,” he said.
Deloitte’s Neville Kahn, Nick Dargan, and Dan Butters have been appointed joint administrators to Woolworths plc and Entertainment UK (E UK) Ltd, the wholesale division on Woolworths.
Mr Khan, the reorganisation services partner, 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.
“The company will continue to trade. 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 co-operation and support from the management and staff.
“We are glad that arrangements are in place to ensure that all wages will be paid in full this week.”
Mr Butters said: “We are working hard to ensure that any sale of the business, whole or part, will preserve jobs.”
As well as trying to find a buyer for Woolworths, Deloitte will also be seeking to retrieve something for those owed money by the company, including banks and suppliers.
Mr Butters confirmed how within 24 hours of Deloitte’s appointment as administrators, expressions of interest in Woolworths had been received from ‘a number of parties’.

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.”

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.”

Roadshow visits town to give advice on saving energy

AN Energy Saving Week roadshow is again visiting Minehead and will be in the town on Friday, October 26.
It features advice, freebies, and a special visit from giant washing machine, all designed to prove to local residents that being green really is easy.
District council environmental health manager Ian Timms said: “The Bristol and Somerset Energy Efficiency Advice Centre is a one-stop source of free information on all matters relating to saving energy in the home.
“Whether your motivation is saving the world, saving the pennies, or keeping out the winter chill, their friendly experts can help.”
“Last year, the Minehead roadshow helpers spoke to over 150 people and delighted many who did not know that they qualified for free insulation simply for being over the age of 70, on a low income, or in receipt of a qualifying benefit.
“As well as information on grants for insulation and heating, they are happy to be quizzed on all matters under the energy-saving sun, from renewable energy to low energy lighting.”
The Energy Saving Week roadshow will be outside Woolworths, in The Avenue, between 10 am and 4 pm.
Every visitor will receive a free energy saving light bulb.