Woolworths shares have been hit after it was revealed that the retailer’s lenders had drafted in Deloitte as an advisor.
Burdale Financial and GMAC Commercial Finance agreed a £385m loan to the retailer last year and they have now enlisted Deloitte to help in negotiations centred on the company’s business plan for next year.
A spokeswoman said: “We remain within all of our [banking] facilities. The board of Woolworths Group is comfortable with the financial and cash position of the company.
“We are working as normal with our lenders who continue to be supportive.”
In September, chief executive at Woolworths Steve Johnson said that “basic shopkeeping” is needed at the retailer after it posted huge losses in the first half of the year.
