Former Woolworths bosses slams Deloitte's administrator role

Woolworths' former bosses have put the boot into the company's administrators Deloitte.

Woolworths Group chairman Richard North and Steve Johnson claimed that Deloitte's role as both adviser to the company's banking syndicate and then as administrator, was a potential conflict of interest, reported the Daily Telegraph.

"I think it is unsatisfactory that advisers to banking groups on their options can then become administrators," said Johnson.

"The order of magnitude of fees is a factor of many times higher for an administration, compared to giving advice."

North believed that management plans to restructure the business would have saved jobs and stores.

Deloitte partner and joint administrator at Woolworths Neville Kahn vigorously defended the firm's work.

He said the company’s directors had approved Deloitte's practitioners' appointments to Woolworths, and fees had no bearing on their advice.

"The reason that Woolworths failed was because it was making substantial losses. Its working capital was impacted because of the withdrawal of credit insurance and it ran out of money. The directors were the ones who appointed administrators," said Kahn.

Further reading:

Deloitte: Woolworths’ banks to be paid in full