The administator in charge of Woolworths has revealed that over 500 suppliers to Woolworths and EUK – including many games publishers – stand to lose money on products sold into both companies.
However, joint administrator of Woolworths at Deloitte Neville Kahn said that EUK's warehouses – which still hold millions of pounds worth of stock – remain operational and will stay open into the New Year.
Kahn revealed today that all Woolworths stores will be closed by January 5th.
He said: I think it's unclear how much suppliers will get back [on products held in EUK and Woolies]. It depends on the overall return of the whole business. They are obviously unsecured creditors unless they have got value retention title claims.
We are aware that certain suppliers will suffer a loss because of the Woolworths administration, but we don't have the ability to quantify it. A number of suppliers are now seeking alternative sales channels. Woolworths may be off the High Streets, but people still want to buy goods.”
Kahn said he expected to be deadling with suppliers' claims for "the next few months".
He later added: Various retention of title agreements have been sorted in respect to publishers. [EUK customers] are being dealt with on a case-by-case basis.”
Of EUK, Kahn said: The search for a buyer continues.”