Woolworths could fall into administration this week unless the chain is bought out by Hilco, sources have said, a development that could have disastrous consequences for supermarkets.
Over 30,000 jobs could be lost at the retailer if it fails to survive the economic downturn, while supermarkets’ supplies could be threatened if EUK – Woolworths’ distribution arm – goes into administration.
The outfit distributes CDs, DVDs and books to some of the biggest supermarkets, including Asda, Sainsbury’s and Morrisons.
Hilco is looking to purchase 800 Woolworths stores for the nominal fee of £1.
In the summer, an offer by Iceland boss Malcolm Walker fell into trouble when his backer Baugur, the Icelandic investor, witnessed problems in the economic downturn.
