Woolworths' biggest shareholder Ardeshir Naghshineh has criticised the potential sale of the retailer to Hilco, saying the group's stores are worth much more than the nominal price that has been tabled.

Naghshineh, the Iranian property tycoon who owns London's Centre Point in the West End, controls 10.2 per cent of the struggling chain.

“It's ridiculous to sell the whole retail division for£1,” he told the Financial Times. “We know that it is worth hundreds of millions of pounds. I know stores at the moment where landlords are prepared to give millions of pounds in premiums to get Woolworths out.”

He declined to say whether he would be part of a rival bid.

Hilco is offering to take on part of the retailer's debt and all the leases, although it is unclear what would happen to the pension deficit fund. It is thought that under the deal the majority of the debt would stay with the rump of the company, EUK and 2 Entertain.

In August Woolworths rebuffed a£50 million Baugur-backed offer by Iceland chief executive Malcolm Walker.

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