The Times says firm could be ‘hours away’ from administration; is MP Peter Mandleson unlikely saviour?
Woolworths is ‘a few desperate hours of negotiation’ away from administration.
That’s according to The Times, which quotes sources saying ‘administration is the most likely option as the retailer scrabbles to find sufficient funds to pay its monthly wage bill’.
However MCV can confirm that the chain’s games buying team is still in place and at work today.
A spokesperson for the firm could not comment when contacted by MCV today.
The Times also reports that Woolworths has now ‘agreed in principal’ to sell 2 entertain to BBC Worldwide, its joint venture partner, for £100 million in a bid to cut its debt.
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Elsewhere in the news, Retail Week reports that Business Secretary Lord Mandelson has intervened to attempt to save the chain – and convince its lenders to sell the Woolwroths retail arm to Hilco Ltd.
According to the trade magazine: ‘Mandelson's office called in Woolworths' lenders – which include Burdale and GMAC - for an emergency meeting yesterday as the retailer tottered on the brink of administration.
‘Mandelson's office is also understood to have contacted Barclays boss John Varley - the bank allegedly threatened not to process Woolworths' payroll this Friday - to press for a change of heart.’
Comments
Deliveries
Well Apparently my local woolworths has been told not to accept any deliveries from anyone today and been turning them away, Also apparently WH Smiths wont send back any stock to EUK as they fear they wont be credited for anything that goes back.
Also looking in my local woolworths they are out of stock of most of the top 10 on all formats and consoles
My local woolworths is a very big store (not a little 1)
Times just dont look good for them and at that I see it to be very difficult for any recovery from this.
Re: Deliveries
Tick Tock when do I get my cheap stock
sad but true
bring on the trumpets!
Re:Administration
This comes as no surprise to me. I predicted this one year ago. Woolworths problems come from various errors of poorly run business and also general dis-interest in the run of the mill products they offer these days which lack any originality over other high street chains. When they hit our industry and started selling at or below cost this was the beginning of the end. Like many big chains they use our products to "lure" people in at the hope they will buy something else with profit. All that happens is people-not as dumb as the likes of Woolies may think-buy the best deals possible then move onto the next sheep like mentality store and buy the best deal from them also. So, now the general public-quite rightly-expect nothing less than free games with the consoles they buy meaning none of us can profit from certain machines particulary the wii.
Many indies have collapsed because of this "strategy" sadly Woolworths have during this downturn had this come back to bite them very hard.. gaming stock is very expensive to stock and with just money coming back in at the same as it went out how can they possibly expect to make money?
Re: Re: Deliveries
its a shame but woolies have been slipping on everything lately R.I.P
Re: Re: Deliveries
It looks like it has gone into administration. Reports are starting to come in all over the news about it. Don't quote me 100% but that is what I am reading.
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MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets