Woolworths back under serious pressure this evening
It has been revealed that ongoing efforts to sell the Woolworths retail arm are continuing with Hilco UK which specialises in restructuring troubled businesses. As we covered earlier in the week the reported sale price is just one pound although this has not been confirmed by the Woolworths board.
Shareholders in the troubled pix and mix group have come forward to suggest that the board of director's have made the wrong move in talking with Hilco UK, suggesting that existing investors may well have been interested in joining the party. While there is no doubt the group has substantial debt, the net value of the retail operation has created something of an argument between existing shareholders and the company's management.
The last few weeks have seen speculation grow about the future of Woolworths and the state of the balance sheet of one of the U.K.'s best-known and best loved retail outfits. However, what appears certain is the fact that the operation will never be the same again as changes appear to be inevitable in the short term.
Investment analysts have cut the company adrift and nobody appears willing to suggest a buy at this moment in time with the ever growing uncertainty. The picture should become much clearer over the next few days with stock market observers expecting some kind of formal announcement.
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