Administrators get to work on Woolworths and MFI

Renowned High Street chain, Woolworths, entered administration yesterday after 99 years of trading.

Today, attempts are being made to rescue the retailer and administrators Deloitte said it had received ‘expressions of interest’ from a number of parties.

Dan Butters of Deloitte said they are working hard to ensure that any sale of the business, in whole or part, will preserve jobs.

It has emerged that all the 815 stores will continue to trade until at least after Christmas and staff will be paid.

Woolworths has been struggling under a mountain of debt of £385 million and has been under pressure from competition from large supermarkets and the internet.

Woolworths said it remains in talks to sell its 40% stake in publisher 2 Entertain to BBC Worldwide, the BBC’s commercial arm.

Furniture giant, MFI, also collapsed yesterday after demand for new kitchens and bathrooms has dwindled amid the housing market downturn. Back in September, MFI was rescued from the brink of administration after a management buy-out.

It is also understood that MFI’s administrators have received interest from potential buyers.

Many analysts believe that more companies could face collapse, particularly in the uncertain economic climate. The retail industry is facing its worst Christmas for more than 10 years.

Story link: Administrators get to work on Woolworths and MFI