Woolworths shares have today been suspended whilst the company looks for a buyer. The retailer is currently in talks with a view to selling its chain of nearly 850 stores. The sticking point, it seems, is the large debts that the firm currently has, which according to reports is close to £400 million. It has been reported that Hilco has offered to buy the chain for £1, but so far this has not been confirmed by the company.
Debt advice specialists are of the opinion that up to two thirds of Woolworths jobs are at risk whatever the outcome. This could mean that up to 20,000 people could find themselves out of work. The firm’s debt problems, coupled with a decline in sales, have led to a collapse in the company’s share price over the last year.