British retailer to close by next month

Woolworths, a century-old British high street institution, will close all its stores at the start of next month, affecting the jobs of some 27,000 staff, the retailer's administrators said on Wednesday.

The company, which filed for administration at the end of November, launched a closing down sale last week as administrators struggled to find buyers.

Some 200 of its 807 stores will close by December 27, followed by 200 more on December 30, 200 on January 2 and the remaining shops on January 5, said accountancy firm Deloitte, which is tasked with winding up Woolworths' affairs.

The move will affect 22,000 permanent staff and 5,000 temporary workers, although some will be kept on for a short period, Deloitte said.

Other retailers have expressed interest in some 300 Woolworths stores, it added, confirming the closure plans after failing to secure a buyer for the business as a whole.

"I guess it is a very difficult situation for a lot of people, particularly the staff, and we are trying to deal with it in as sensitive a way as possible," joint administrator Neville Khan said.

Woolworths stores across Britain are to be flooded with an extra 50 million items in the run-up to Christmas, as Deloitte seeks to get rid of existing stock ahead of the closures.

Stores will also feature signs displaying a countdown to when they will close, in a bid to encourage shoppers.

"This is a terrible blow to Woolworth's staff and to the firms and jobs that rely on the chain's custom," said Brendan Barber, general secretary of the Trades Union Congress, an umbrella group.

"It will also mean a further dent to business and economic confidence and less spending power in the economy," he added.

Source: AFP

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