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Woolies investor urges store sales
24.11.08
Woolworths' largest shareholder, Ardeshir Naghshineh, today said the pick'n'mix-to-CDs stores chain should not sell itself for a token £1 but at the same time should be able to avoid going into administration.
Property tycoon Naghshineh holds a 10.2% stake in the struggling chain.
He met the group's major bankers, which include Bank of Ireland offshoot Burdale and GMAC Commercial Finance, who hold much of Woolworths' £385 million debt.
The talks came as it was reported that potential bidder, turnaround specialist Hilco, is considering improving its offer for Woolworths from a token £1 to take on considerably more of the chain's debt, up to the tune of some £300 million.
Naghshineh said the retailer should look at improving its balance sheet by selling off some of its 840 stores.
He said: "Quite a lot of retailers now want to expand on the UK High Street. If marketed properly further afield, overseas, you'll probably get better value for them."
