Variety store group Woolworths is reportedly seeking £100 million in new loans against its successful EUK distribution business, adding to speculation that a demerger is on the cards.
Its entertainment wholesale division supplies Sainsbury’s and Asda with CDs, books and DVDs. A loan would make Woolworths’ struggling high street stores easier to get rid of, because they would be debt-free. Previously, Woolworths chief executive Trevor Bish-Jones has not ruled out an eventual split of the business.
Last month, Woolworths revealed that group sales had jumped 16.6 per cent in the 38 weeks to October 27, beating market expectations. Sales were driven primarily by acquisitions and new contracts – including the one with Asda – within EUK.
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