Woolworths Group PLC has announced that it is going into administration, after talks of a potential sale of its 815 stores ended yesterday. Woolworths has appointed Deloitte as their administrator, which stated that there were “expressions of interest” for the huge UK retail and distribution business.
Woolworths has been trading for nearly 100 years, but fell foul as competition grew with the boom in internet buying and the current economic climate, spiralled debts to £385 million. Over the past few months Woolworths was also forced to pay in cash to its suppliers, as trade credit insures weren’t prepared to insure against the struggling firm.
Deloitte has reassured staff that the company will stay open past Christmas, and that the 30,000 strong workforce will be paid. All of Woolworths 815 store are open as normal, but it is unsure for how long.
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