Woolworths look likely to succumb to the pressure and go into administration after failing to secure a deal with Hilco to buy the companies £385million debt for a nominal £1.
Deloittes will be appointed as administrators to the store chain and its DVD distribution group Entertainment UK. The company hope to be able to keep the stores open at least until Christmas, but nothing is certain yet.
Woolworths and Entertainment UK employ around 30,000 people, all who were hoping that a last minute deal could be struck and are understandably devastated by the news.
Furniture Superstore MFI has gone into administration, with it’s 110 stores now facing closure. MFI had hoped to agree a rent free period with it’s landlords, but an agreement could not be reached. The company has suffered financial problems for some time and only last year put 85 stores into administration as part of a management buyout.
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