Woolworths ponders £1 sale of retail arm to Hilco

Woolworths ponders £1 sale of retail arm to Hilco

Troubled retailer Woolworths is negotiating the sale of its whole high street business to Hilco for £1

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

Woolworths FD leaves troubled retailer

Read
The Times story

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource