Woolworths, MFI and 247 Electrical in administration
Woolworths has collapsed into administration, casting doubt over 31,000 jobs.
Woolworths and MFI have fallen into administration, making them the UK’s first big-name high street retailers to collapse under the pressure of the credit crunch.
It means Woolworth’s 800 stores will cease trading putting more than 31,000 jobs at risk, whilst closing down sales will begin at 111 of MFI’s remaining stores, casting doubt over 1,000 jobs.
Online retailer 247 Electrical has also closed its online store after entering into administration. It said in a statement: “…Having exhausted all options, the company has had to cease trading.”
Parent company Woolworths Group plc is not in administration, however, and remains in discussions relating to the sale of its 40% interest in 2 Entertain Ltd to BBC Worldwide.
Woolworths Group plc said in a statement: “Further to the announcement of 26 November 2008, the Board of Woolworths Group plc announces that discussions relating to the potential sale of its retail business have now ended.
“Following, and as a consequence of the termination of those discussions, the boards of Woolworths plc and Entertainment UK Ltd have concluded that there is no longer any prospect of those businesses being able to operate as a going concern.”
Adding to the high street doom and gloom, DSG International – owner of Curry’s and PC World – has today (27 November) posted massive half-year underlying losses of £29.8 million after suffering a 7% decline in like-for-like sales.
Looking forward, the group said it is “prepared for a recessionary environment”, but added that the outlook for Christmas and 2009 in general is bleak.
By Natasha Piscitelli
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I have a mate who worked at Woolies and is convinced that the whole thing’s being going south for a while. Apparently the store he was in was losing money all the time. It sounds more like Woolworths may simply have been a failing business that was found out.
December 15th, 2008 at 3:56 pmI’ve worked in woolworths group 6 years ago - apparently about the last time they were profitable. I left due to the incompetance of managment / HR and few workers who kissed the backsides of the ones above. I knew then on that if this is how the company is like at the top then it stands no chance as a business.
December 23rd, 2008 at 6:22 pmOver the years i did notice how every year they annouced a loss on the accounts every year be it a few £million or £10s millions -a loss none the less.
Thank god I didnt take the offer to buy shares as part of a pension plan, and walked out. Here we are today December 2008 the final countdown has begun and am sure the pile it high/sell it cheap philosophy will resurface yet again.