Woolworths stores empire to close in January but interest continues

More than 300 shops are under offer to other retailers but there is still interest in buying the Woolworths name along with the Worthit!, Ladybird and Chad Valley brands.

Despite the failure to sell Woolworths as a going concern administrator Deloitte’s Neville Kahn believes the Woolworths brand will survive. “I think it will come back onto the high street at some point,” he said.

Woolworths stores chief Tony Page is still working with potential investors to try to secure a deal.

He said: “I know there is a viable business inside Woolworths Retail. The issue is more about which stores are available. The hurdle people have to get over is getting the brand going again and restocking from scratch at a time when banks are unwilling to lend.”

Adams Childrenswear owner John Shannon is understood to be interested in buying the Ladybird brand. Sources close to the situation said Shannon would not necessarily put Ladybird products in Adams stores but is interested in the brand’s overseas business.

Shannon may also consider opening standalone Ladybird stores in the UK. Separately, the fallout from Woolworths’ collapse prompted entertainment retailer Zavvi to halt gift voucher sales.

Zavvi said it was as a precaution in case it should cease trading as a result of the collapse of its supplier, Woolworths’
EUK business.

A Zavvi spokesman denied that the decision indicated the retailer faced administration. He said: “We have stopped issuing gift vouchers in the unlikely event of anything happening to us. We have also ring-fenced an amount of money to protect our customers [who have bought gift vouchers].”