News and Politics | November 22, 2008 | 16 comments

30,000 jobs at risk as Woolworths edges towards collapse

source: http://www.guardian.co.uk/business/2008/nov/22/woolworths-retail-mk-one

Image
Impact_Edchief
The high-street retailer of Woolworths is on the edge of collapse, with the jobs of its staff under threat.

More than 30,000 retail jobs were at risk last night as Woolworths fought to avoid collapse and the fashion discount chain MK One crashed into administration for the second time in a year.

Woolworths' future was hanging in the balance after its bankers objected to a management rescue plan to sell the loss-making 800-store chain to Hilco, which specialises in restructuring distressed companies.

The 99-year old retailer, which is a mainstay of town and city centres across the country, is now in last-ditch talks with its lenders in an attempt to avoid bankruptcy. But a source close to the negotiations said the talks had reached "an impasse" and "are not looking good".

Some 25,000 staff work in Woolworths stores and another 5,000 for two other businesses in the Woolworths group: EUK and 2entertain. The group also has 10,000 pensioners and pension fund members.
  1. groups:
    News and Politics,   Current News UK
  2. tags:
    News and Politics,  Current News UK,  Finance,  Business,  5 more
  3.     
    |

16 comments // 30,000 jobs at risk as Woolworths edges towards collapse

  • Ragan
  • Impact_Edchief
    • 0
      Impact_Edchief  

    • I guess we're on the same wavelength then! We have a shop back home called Mad House, which has been, according to its sales posters, 'closing down' for the last 6 or 7 years. I wonder if the boy who cried wolf syndrome is going to get them.

    • 3 years ago
  • Impact_Edchief
    • 0
      Impact_Edchief  

    • I don't think we'll see the end of the High Street, but you can imagine them getting a lot more quiet. If Woolworths goes under, and so do a few other shops, nobody will be around to replace them (except, perhaps, Starbucks). You might just see empty buildings, with not a lot going on.

      Actually quite a good thing on a busy Saturday!

    • 3 years ago
  • RubberRims
  • RubberRims
    • 0
      RubberRims  

    • I am going to take a punt that we may be also seeing the demise of the high street. Internet sales have been booming in comparison to physical high street shopping. Woolworths is severally over stretched by its overheads, and in its market it has been fighting tooth and nail to stay in the black for the last 14 months. Whoever takes the company on is in for hard times. In Short as it stands £1 buys you a failing entity.

    • 3 years ago
  • r3morse
    • 0
      r3morse  
    • RubberRims:

      Thats a big punt. There are still many, many people who are not happy with buying stuff over the internet. There are also many people who do not have access to the internet.

      There will always be a high street, because for some it's more convenient and therefore they are happy to pay a higher price, incentive enough to keep a shop open.

    • 3 years ago
  • RubberRims
    • 0
      RubberRims  
    • RubberRims:

      I completely agree with you. My example is you cannot keep a business going for a minority who may not even spend anything at this type of store. See this is a fundamental issue with the internet, young and old use it. A minority and they are a small minority just need access to everyday items.

    • 3 years ago
  • Helen_Croydon
    • 0
      Helen_Croydon  

    • Woolworths is the only place where you can buy the things that you don't know where to go to buy: A new winter duvet, a needle and cotton, drinks coasters, plug extension, hoover bags, de-icer for the car, radio alarm clocks. Where am I going to go?!

    • 3 years ago
  • impact_managingeditor
  • John_Amble
  • Boondock
    • 0
      Boondock  

    • If Woolworths goes, you've got to think - what's next? When more people lose jobs that means less people are buying things, which means trouble for more businesses - beyond pick and mix.

      Boondock

    • 3 years ago
  • Monkeydust1
  • r3morse
  • Adam_Barnes
  • mischabarrett
  • r3morse
more from News and Politics:
from the community

top videos