Shares in the struggling retailer Woolworths have been suspended while it is in talks to sell both its retail arm and its publishing arm 2 Entertain.

Last night BBC Worldwide agreed in principle to pay more than£100 million to Woolworths for its 2 Entertain publishing business, according to Financial Times.

BBC Worldwide already has a 60 per cent stake in 2 Entertain, with Woolworths owning the remaining part of the business. But the embattled retailer is seeking to sell off its stake in a bid to stave off administration.

The retailer is also in talks with restructuring specialist Hilco to sell off its 800-store retail arm for a nominal sum.

Woolworths’ biggest shareholder, property tycoon Ardeshir Naghshineh, who owns 10.2 per cent of the business, has been in talks with the retailer’s banks in the last two days. It is thought he is working on alternative proposals to save the business.

This week Retail-Week.com revealed that Woolworths, one of the country’s biggest toy sellers, stopped selling toys on its web site on Tuesday, during its key Christmas trading period.

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