Woolworths in talks over £1 sale

British high street retailer Woolworths confirmed today it is in talks over the possible sale of its retail business.

While the company did not identify the suitor, the Times newspaper said the company was in discussions with Hilco, the retail turnaround specialist, about the sale of the high street business for £1 (€1.18).

Woolworths recently rejected a proposal from Iceland retail founder Malcolm Walker.

The retailer, which has been a presence on UK high streets for nearly 100 years, has more than 800 stores but has been battered by competition from supermarkets and internet retailers.

A retail deal would leave it with EUK, its entertainment wholesale division, and 2Entertain, the music and video publishing venture with the BBC.

Today’s newspaper report said the talks were likely to hinge on how much of Woolworths’ debt Hilco will be prepared to take on. The company’s net debt stood at £295m (€350m) at the start of August.

And negotiations over responsibility for an estimated £100m (€1.18m) pension fund deficit will also need to take place.