The board of Woolworths Group has applied to go in to administration, following the collapse of its retail arm and entertainment division EUK last year.

Woolworths Group had remained outside of the insolvency process as it tried to maximise the returns it would get from a sale of its 40 per cent stake in 2 Entertain.

The company is still in negotiations with BBC Worldwide, which owns 60 per cent of 2 Entertain, about a possible sale.

In a statement it said 2 Entertain “continues to trade profitably”.

It added: “The directors have concluded that the Company [Woolworths] is no longer in a position to pay its debts as they fall due and an application has been made to the High Court for an administration order to be made.

“It is expected that the application will be heard on January 27, 2008. In the meantime, the directors will continue their negotiations with BBC Worldwide and to take all steps appropriate in the interests of its creditors as a whole.”

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