Iceland buys 51 Woolworths stores

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The firm said the jobs would be created across the country in the coming year, in addition to its existing store opening programme.

Marketing director Nick Canning said: "We are confident we can help to support the local community in these towns who have lost a major high street retailer in Woolworth's.

"We look forward to developing our business in 2009 by continuing to offer our customers fantastic value everyday across our range of frozen, grocery and chilled products."

The announcement ends speculation that Iceland was poised to buy up some of the closed Woolworth's stores and is a welcome employment boost at the end of a dreadful week for jobs.