I am sure most of you are aware that we may be seeing the final few months of Woolworths in the UK... as the holding company is now in the process of selling off all its stores for £1.

 

I personally am very saddened by this as I forsee a drastic decrease in music sales, as another place stocking outlets closes shop, especially as it is the biggest UK retailer in music. :(

Yes, the rumours have been around for a few months that it will disappear in January 2009.... but it is still to be confirmed.

I love Woolies! :(

Woolworths in talks to sell retail arm

Source:MW

09:48 | Wednesday November 19, 2008

By Ben Cardew

 

Woolworths has confirmed that it is in talks to sell its troubled retail business, in a move that could have a positive impact on distribution arm EUK.

 

Reports this morning indicate that the company is in talks with specialist distress fund Hilco to sell its retail business for £1.

 

In a statement to the stock market, Woolworths acknowledges that “it is in preliminary discussions regarding a possible offer for the retail business” but does not give names. It adds, “There can be no assurance that any offer will be forthcoming.”

 

Analysts have long speculated that the company’s loss-making retail arm is set to be spun off: in Woolworths’ most recent results the retailer made a loss before taxation of £99.7m in the first half of the year, largely due to troubles within its retail arm.

 

Any such deal would likely prove positive for EUK, which has suffered from its parent company’s woes: Woolworths’ poor performance has meant that suppliers have been unable to get credit insurance for their supplies in case anything happened to the Woolworths Group.

 

Woolworths also co-owns 2 Entertain with the BBC, home to Demon.

 

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Here is a report I found on MW

:o Didn't know about this!

 

Woolies is pretty much the biggest shop in my town except supermarkets and one of the only places to buy albums! :cry:

I just can't believe its happening to be honest... I so love the experience of purchasing a record... Woolies is the only place I can buy music for about 4-5 miles... Alot of people who impulse buy, will no longer have the opportunity to do so and possibly the pop market will shrink even further!

From Reuters:

 

Struggling sweets-to-CDs U.K. retailer Woolworths is in early talks to sell its high-street business for what one industry source said is likely to be a nominal sum.

 

The source said the 99-year-old group, one of the nation's best-known store chains, is in talks with company-restructuring specialist Hilco.

 

The retailer confirmed it is in early talks on a possible offer but named neither the potential buyer nor a sale price.

 

Woolworths, which runs about 800 shops and also has a DVD publishing and distribution business, declined comment specifically on any deal with Hilco but did confirm talks are taking place.

 

"The Board can confirm that it is in preliminary discussions regarding a possible offer for the retail business,” Woolworths Group said. “There can be no assurance that any offer will be forthcoming.”

 

Hilco was not immediately available for comment.

 

Earlier, the Times of London said Woolworths is in talks to sell its retail business to Hilco for only 1 pound ($1.50).

 

In August, Woolworths rejected a bid approach of about 50 million pounds ($75 million) for its retail business from a consortium led by Icelandic investor Baugur.

 

At 8:40 a.m. Wednesday, Woolworths shares were down 12.1% at 3.35 pence (5 cents), valuing the group at about 49 million pounds ($73.5 million).

 

Woolworths, which demerged from Kingfisher in 2001, has been struggling for years in the face of growing competition from supermarkets, online retailers and specialist players.

 

Its problems have been exacerbated in recent months by a rapid downturn in consumer spending, which has forced a string of retailers, including furniture sellers MFI and ScS Upholstery, into administration, a form of creditor protection.

 

Woolworths posted a record first-half underlying pretax loss of 90.8 million pounds in September and scrapped its dividend.

 

Bank of Ireland division Burdale Financial and GMAC Commercial Finance will be key players in any Woolworths sale. Together they lent Woolworths 385 million pounds ($577.6 million) in January. The pair appointed Deloitte to represent them in talks with Woolworths last month.

Another blow to the music industry.

I swear I posted on here :o

 

Well anyway, in Nottingham we're quite lucky. My nearest Woolies is in the town center where literally doors away is my HMV/Zavvi etc... so we're quite lucky. but this will be a major blow to sales I'm pretty sure :o

Another blow to the music industry.

 

Bloody hell. Apart from a TEEEEENY HMV, Woolies is the only music shop in my town. Thing is, if they;'re selling them off for £1, can't I buy a few and safeguard it from closure? :)

Bloody hell. Apart from a TEEEEENY HMV, Woolies is the only music shop in my town. Thing is, if they;'re selling them off for £1, can't I buy a few and safeguard it from closure? :)

Loving the idea Tom, i'd buy mine!

 

My town is pretty large (for Scotland anyway) but CD-wise we only really have Woolies, and WHSmith who's prices are awful and range is limited to one "Chart" wall display of about 40 albums. There's no A-Z and only 1 rack of sale/budget. Woolies isn't exactly cheap but its range and weekly deals are better. We have an Asda at the edge of the town centre so will pretty much be stuck using that now. They've just expanded the town centre so hopefully one of the new units will be an HMV or Zavvi though! Gutted, I love my trips to Woolies only decent music shop in town!

 

Also, are they really the biggest music retailer? Is that due to no. of stores mainly coz sure HMV would be bigger? :blink:

My 3 local Woolworths are all pretty much $h!te. The one in town is OK, but nowhere near as good as it used to be. :no: The worst one is this massive one (Use to be called Big W) about 20 minutes away and it is seriously c**p. It's just a compete mess and looks just like a huricane has just torn through it. Stock is just lying everywhere and there are huge empty spaces where they don't have enough stock to fill the store. Won't be sorry to see that go ;)

 

My parents first met whilst working in a Woolworths. Dad was the manager and mum worked on the Deli. They are both sad to see it go the way it has

Edited November 19, 200816 yr by Glyn

Oh MY, Woolworth’s was always a stalwart of UK high streets a sign of the times if it’s on the verge of collapse.

 

In the current economic climate I can’t see them finding a buyer, with a half yearly loss of 90 million the operation would have to be savagely scaled back to have any chance of turning it around in more fair-weather financial times let alone in the midst of a deep recession.

 

Album sales will suffer! :(

I'll be sad to see woolworths go, they are an iconic name and like a lot of people i've visited

there loads of times.

 

And most towns only have a woolworths to shop for music, this includes a lot of coastal towns including

Rhyl, North Wales.

They used to have an Our Price (we all know what happened there) and an independent shop but not anymore.

 

nahh. :o

 

My local woolies up town is amazing.

WHAT :o I can't believe this! I always use Woolies!

Another shop selling music that has been outpriced by the internet and supermarkets :(

 

Poor Woolies, I remember the days of looking forward to where they placed singles on Mondays.

The worst one is this massive one (Use to be called Big W) about 20 minutes away and it is seriously c**p. It's just a compete mess and looks just like a huricane has just torn through it. Stock is just lying everywhere and there are huge empty spaces where they don't have enough stock to fill the store. Won't be sorry to see that go ;)

 

You know I actualy used to work in one of them. Probably not your one, it was in Newark, but you're right, it was a mess. It was a Woolies that kind of wanted to be a supermarket, but everything was so messed up. I live up North now so I haven't been for years. But to be honest it was one of the most exciting jobs I ever did, simply because I got to put the price stickers on the new releases on a Sunday before the Monday of release :)

 

I'll be sad to see woolworths go, they are an iconic name and like a lot of people i've visited

there loads of times.

 

And most towns only have a woolworths to shop for music, this includes a lot of coastal towns including

Rhyl, North Wales.

They used to have an Our Price (we all know what happened there) and an independent shop but not anymore.

We had an OurPrice too! :lol: Game is now in that unit, with a few things in between. Computer games make more than music now though. My town will have 2 shops which sell CDs when woolies shuts, but has 4 dedicated games stores, as well as the 2 selling music which also do games :wacko:

 

Another shop selling music that has been outpriced by the internet and supermarkets :(

 

Poor Woolies, I remember the days of looking forward to where they placed singles on Mondays.

Shame they stopped doing singles or maybe we still would :)

If they were going to shut in Jan 09, they could have kept singles on for the last 5 months ffs, what difference would it have made to 90mil! And since it was just a c**p cardboard stand, they haven't gained shelf space in removing them! :blink:

I am just wondering, what the music industry will do... its not as if supermarkets can captue woolies music market, as only large supermarkets tend to stock CD's and DVDs and they are not really based on the local high street or in the town centre.