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'Too late' fear over Woolies rescue move by Sir Geoff
10 Dec 2008A LAST-ditch rescue bid for Woolworths was being launched today, but analysts fear it has come too late to save the beleaguered chain.
Retailing grandee Sir Geoff Mulcahy, who ran the business for almost 20 years, claims Woolies can be saved as long as administrators from Deloitte can be persuaded.
But with Deloitte moving quickly to offload various parts of the business time is running out. Mulcahy wants to take on 500 of the 813 stores, revive the brand and protect 25,000 jobs.
He told The Sun: "There must be a way of trying to save this business. It's late in the day - but there's still a possibility."
Deloitte has already moved to sell many of the properties to supermarkets and to frozen-food chain Iceland. Dragons' Den entrepreneur Theo Paphitis had a rescue deal refused last week.
Paphitis was critical of Deloitte's approach, suggesting it was not trying hard enough to save the business, concentrating instead on a fire-sale of goods. That sale, with many items at half price, is continuing.
Last Friday, 450 jobs at the head office in Marylebone Road were axed, leaving a skeleton staff.
Mulcahy built up Kingfisher, a conglomerate that owned Woolworths, Comet and B&Q. Woolies was demerged from Kingfisher and floated on the stock market in 2001. It made profits of £130 million at the time.
Reader views (4)
We lost Woolworths in America in 1997 after 118 years of
retailing. It's sad that British "Woolies" won't even see in its 100th year unless a buyer can be found and re-invents itself. I wonder if any of F. W. Woolworth's descendents would be interested in rescuing the chain store from oblivion?
- Steven, Mirfield, UK, 11/12/2008 14:50
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Woolworths isn't a good company. It is highly doubtful that there is any need for such a chain, now that the big supermarkets provide the same good more conveniently. On the other hand, if Wilkinsons does most of same things better, it is right and proper for them to replace Woolworths.
- Oliver Chettle, Bedford, 10/12/2008 17:31
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How is it that woolworths has failed when a company like Wilkinson is still in operation? Wilkinson seems to be the new woolworths with a similar range of products although DVDs and CDs limited.
- Aj, London, UK, 10/12/2008 13:58
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Isn't this just typical of the way administrators around the country are destroying good companies and people's livelihoods for the sake of a quick buck. They are just as despicable as the bankers who got us into this mess in my opinion.
- Mark Jackson, London, UK, 10/12/2008 11:28
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