Woolworths collapse may benefit bank

THE collapse of British retailer Woolworths is expected to result in a windfall in penalty fees for Bank of Ireland.

The bank said its subsidiary, Burdale Financial, will recover in full the £385 million (€411m) it lent to Woolworths in February last year. However, it would not comment on reports that it will also collect millions of pounds in “penalty fees”.

Analysts said yesterday that the fees in question are likely to be those incurred for the early repayment of the loan.