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19 Nov 2008
Troubled retailer Woolworths is looking at selling its entire high street business to Hilco for only £1, depending on how much of Woolworths' debt Hilco is prepared to assume.
Any deal will require the approval of the chain’s banking syndicate, which recently appointed restructuring advisers from Deloitte to guide it on further loan negotiations with Woolworths.
Negotiations over the responsibility for the £100m pension fund deficit, which Hilco will not want to assume, will also be difficult, but a solvent demerger of its underperforming retail arm and its media and distribution businesses would be a huge victory for a company that many believe will not survive Christmas, The Times reports.
The deal would also require the approval of Woolworths’ shareholders, who will be left with the remainder of the company, which is likely to be burdened with the bulk of the pension liability and debt.
Further reading:
Woolworths lenders call in Deloitte
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