Tuesday, 16 December 2008




Woolworths administrator Deloitte has announced 450 redundancies in the company’s London head office and at its support operations in Castledon, Rochdale. No roles have been made redundant in the group’s high street stores, distribution centres or at its entertainment distributor EUK.

Job Centre staff will attend both sites to provide advice and support to employees who have been made redundant and the Insolvency Service has put together a team to approve their entitlements claims. Deloitte said it will keep Woolworths’ stores and distribution centres operational until after Christmas with a simplified core structure supporting them.

Deloitte said it is still working alongside Woolworths management to find a buyer and retains hopes of selling the retailer as a going concern to preserve as many jobs as possible. A number of interested parties are said to be in talks with the administrators.

The administrator also issued assurances that Woolworths’ Biggest Ever Sale, which launched today, will not adversely impact efforts to sell the business. Yesterday, Woolworths announced discounts of up to 50 per cent on all goods including 50 per cent off toys, 30 per cent off Christmas trees and decorations and 50 per cent off greeting cards. It is feared that offers at the retailer will hit high-street competitors in the run-up to Christmas.

Deloitte reorganisation services partner and joint administrator Neville Kahn said: "We have today launched Woolworths’ Biggest Ever Sale, which is complementary to and will not adversely impact upon our efforts to sell the business. We are extremely grateful to the staff and management for their continued support at this difficult time. We would also like to thank the Job Centre and Insolvency Service for their cooperation and help."



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