Former Woolworths boss in bid for stores
A former boss of struggling British retail chain Woolworths is bidding to take over more than half the group’s high street stores.
Sir Geoff Mulcahy, who bought Woolies as part of a consortium in 1982, has asked administrators running the business if he can take on around 500 of its 813 branches, according to The Sun.
The paper said he would then form a team to run the business and pay off £380m (€434m) of debts.
Mulcahy – who is currently chairman of the British Retail Consortium – told The Sun: “You have 25,000 staff at Woolworths and there must be a way of trying to save this business.
“It’s late in the day – but there’s still a possibility. We’re considering a number of options.”
His rescue bid came as The Sun reported that other firms including frozen food giant Iceland were eyeing chunks of Woolies’ retail estate.
The historic chain was placed in administration last month after a rescue deal fell through.
Administrator Deloitte made around 450 staff at the retailer redundant last week as it tried to find a buyer for part or all of the business.
A massive sale with up to 50% off toys and gifts was also launched, with a pledge that stores would carry on trading beyond Christmas while a rescue deal was sought.
Mulcahy went on to build retail empire Kingfisher after buying Woolworths in the 1980s.
Kingfisher’s other businesses included Comet and B&Q, with Woolworths being demerged as a separate business in 2001.
'Dragons’ Den' entrepreneur Theo Paphitis made an unsuccessful bid for part of the Woolworths chain after it went into administration. His proposal 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 it was likely a break-up of the business would raise more cash for creditors.
Woolworths’ wholesale distribution business Entertainment UK was also placed in administration last month.
The retail group’s publishing business 2Entertain, a joint venture with the BBC’s commercial arm BBC Worldwide, is not in administration.
