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Woolworths in talks about sale of the business for £1
Sweets-to-CDs retailer Woolworths is in talks about a sale of its high street business for a nominal 1 pound to Hilco, a company turnaround specialist, The Times newspaper reported today.
The paper said the talks would hinge on how much debt Hilco was willing to take on, and any deal would need to be approved by the retail chain's banking syndicate, which recently appointed Deloitte to advise on next year's business plan.
Woolworths has been under pressure to dispose of its key retail business. In August, it rejected an offer for its stores worth about £50 million from Icelandic investor Baugur. Trading in the retail sector has worsened considerably since.
On September 17, when Woolworths posted a record underlying first-half loss and suspended its dividend, chairman Richard North said he was open to talks with third parties on the future of the group's 815-store retail operation but had not put the business up for sale.
Woolworths shares fell 5.5% to 3.81 pence on Tuesday. Its stock has underperformed other London-listed general retailers by 48% over the past 12 months. Woolworths, which also has a DVD publishing business, 2entertain, and a distribution business, EUK, has a £100 million pension deficit, The Times said.
The paper said the talks would hinge on how much debt Hilco was willing to take on, and any deal would need to be approved by the retail chain's banking syndicate, which recently appointed Deloitte to advise on next year's business plan.
Woolworths has been under pressure to dispose of its key retail business. In August, it rejected an offer for its stores worth about £50 million from Icelandic investor Baugur. Trading in the retail sector has worsened considerably since.
On September 17, when Woolworths posted a record underlying first-half loss and suspended its dividend, chairman Richard North said he was open to talks with third parties on the future of the group's 815-store retail operation but had not put the business up for sale.
Woolworths shares fell 5.5% to 3.81 pence on Tuesday. Its stock has underperformed other London-listed general retailers by 48% over the past 12 months. Woolworths, which also has a DVD publishing business, 2entertain, and a distribution business, EUK, has a £100 million pension deficit, The Times said.
Wed, 19th Nov 2008