Woolworths talks 'could save 125 stores'

The Woolworths brand could be thrown a lifeline in an 11th hour attempt to save 125 stores, it was reported today.

Woolworths faces a January 5 closure deadline with the likely loss of 27,000 jobs, after administrators Deloitte failed to find a buyer for the business.

But last minute talks could see outlets in some areas such as Hull – where trading is healthier saved under the Woolworths brand name, according to the Daily Telegraph.

Sources close to the talks believe these stores, which generate £25m (€26.3m) in underlying earnings, would have a very strong chance of survival despite problems with suppliers, the report said.

It is thought a deal would also allow the new company to re-negotiate its leases with the landlords.

Among those said to be interested in the proposition is Woolworths executive Tony Page, who was in charge of the retail operation.

It is understood the plans would involve Mr Page, along with the rest of the management, taking 20% of the equity of the new company, with the remaining 80% held by a turnaround specialist.

Woolworths, which opened its doors in the UK almost 100 years ago, went into administration last month as debts and losses mounted in a worsening high street climate.

Restructuring specialist Hilco had earlier failed in its attempt to buy the company’s stores for £1 and assume a major share of its £385m (€405m) borrowing facility.

The iconic high street retailer is due to start closing its 800 stores on December 27, when around 200 outlets will shut. Further closures are due on December 29 and 30, followed by January 2 and 5.

No one at Deloitte was available for comment.