Woolworths’ former bosses have put the boot into the company’s administrators
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
“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.
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.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children