Troubled High Street chain Woolworths today unveiled a record half-year loss, scrapped its dividend and said it was open to ideas for its 815 stores.

Chairman Richard North refused to say whether he has held talks with Iceland frozen foods founder Malcolm Walker or the Icelandic retail investor Baugur, both of whom have looked at takeover bids.

But new chief executive Steve Johnson, who joined less than month ago, made no secret of the size of his task.

“The scale of the turnaround is huge,” he said. “Right now, this business does not require lots of new strategies, it requires a good dose of basic shopkeeping and attention to the detail of retailing. Everyone in Woolworths is clear that our first priority is delivering a successful Christmas for our customers.”

He added: “I am convinced that there is space on the High Street for a successful home-based variety store offering great value and convenience. My first weeks in the job have only reinforced that view and shown me that Woolworths has a core of strong, profitable stores and a great retail brand.

“It's too early for me to have a fully developed strategy. That plan is in progress but still some way from completion.”

Woolworths' pre-tax losses soared from £63.8 million to £99.7 million in the six months to the beginning of August.

The company said it did not expect City analysts to change their current forecasts, which range from just breakeven to a loss of £10 million for the year.

Same-store sales fell by 3.2% in the six months, with actual sales down 3% at £1.1 billion.

The first-half dividend has been scrapped and a final payout looks unlikely as the company said: “It is better to invest the money saved in turning Woolworths around.”

The shares dropped 1/2p to 5.55p.