Woolworths rescue talks to continue

NEGOTIATIONS on the future of Woolworths are continuing, with Bank of Ireland’s British subsidiary, Burdale, thought to be considering options to prevent the retailer from going into administration.

Burdale, along with GMAC Commercial Fin-ance, is believed to have lent Woolworths £385 million (€451.4m) in January. The largest shareholder in Woolworths, property entrepreneur Ardeshir Naghshineh, yesterday outlined an alternative plan to help save the group from sale or administration.

He said he had talked with the banks over the plans and confirmed they were interested in taking negotiations further, this time with Woolworths’ management.

Mr Naghshineh, who owns more than 10% of Woolworths, is urging it to remain as a going concern by selling off some of its store leases to raise cash.

Woolworths is said to be thrashing out a possible rescue deal to avoid administration, which could see it sold for £1 (€1.17).

Hilco, a restructuring firm, is said to have made an approach to buy the retailers’ 800-store business arm for the nominal sum, reportedly sweetening its offer at the weekend by saying it would also assume a greater share of Woolworths’ debt.

Mr Naghshineh said his plan would ensure cash flow in the run-up to Christmas and put the company on a “sound platform”. It is understood unless a deal is reached soon, the group could fall into administration, risking 30,000 jobs.

A Bank of Ireland spokeswoman refused to comment yesterday.