Administrators in talks with would-be Woolworths buyers

Administrators today said they remained in talks with a number of parties interested in buying British high street retailer Woolworths as a going concern.

Deloitte’s update came as 'Dragons’ Den' entrepreneur Theo Paphitis admitted he had not been successful with a proposal that would have seen the retention of the Woolworths name and acquisition of a large slice of the retail business.

Mr Paphitis said he could not reach a deal with Deloitte, adding that it was likely a break-up of the business would raise more cash for creditors.

However, Deloitte said talks with parties interested in buying Woolworths and CD distribution business EUK would continue into the early part of next week.

Deloitte said: “At the same time, we have received a substantial number of bids from parties interested in the Woolworths properties and have gone under offer on a large number of stores.”

Neville Kahn, Deloitte’s reorganisation services partner, said: “We are working as quickly as

possible to assess proposals. We continue to work hard to ensure that any sale of the business, in whole or part, will preserve jobs.”

Woolworths’ 813 stores will stay open during the festive season but doubts remain over the future of thousands of jobs – the group employs 30,000 staff in the UK, with around 25,000 working in retail.

Mr Paphitis, who made his fortune by turning around companies including stationery business Ryman, had hoped to retain the Woolworths brand name by purchasing a large share of the existing retail business.

He said: “Unfortunately, the constituent parts of Woolworths are more valuable than the whole. The administrators have a difficult job to do and I appreciate that they need to get the highest cash value for the business.

“I am very disappointed that my own proposals have come to nothing but at least I know I’ve certainly tried. I hope that an alternative proposal succeeds in securing the future for the many Woolworths employees involved.”