Dragons’ Den star emerges as potential bidder for Woolworths

Theo Paphitis, one of the Dragons on the BBC2 show Dragons’ Den, is reported to be working on a rescue plan for Woolworths.

According to Deloitte, Woolworths’ administrator, over a dozen inquiries have been received from retailers, private equity firms and individuals.

High Street chain, Woolworths, entered administration last week after 99 years of trading.

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

According to The Sunday Times and The Sunday Telegraph, Mr Paphitis met the administrators on Friday in London, and is rumoured to be one of 10 serious potential bidders.

Entrepreneur Mr Paphitis has turned around companies including stationers Ryman and Partners and the La Senza lingerie chain.

It is understood he is working on a plan to rescue some of the retailer’s most profitable stores and retain the Woolworths’ brand.

Meanwhile, Ardeshir Naghshineh, Woolworths’ major shareholder, is also rumoured to be working on a bid. The property tycoon holds a 10.2% stake.

Woolworths, which is one of the UK’s oldest chains having been established for 99 years, has more than 800 high street shops and a workforce of 30,000.

Furthermore, it has emerged that discount chain, Wilkinson, is to cut costs and staff have been told to expect redundancies.

A spokesperson for the company denied that the cuts were related to the economic slump but insisted they were related to a new supply chain

Wilkinson has been trading for almost 80 years and has over 300 stores.

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.

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