'Biggest ever sale' at Woolies as takeover talks continue

Published on Friday 5 December 2008 09:30

STRUGGLING high street store Woolworths was today set to hold its biggest ever one-day sale as administrators continued to try to save it.

Administrator Deloitte said it would slash up to 50 per cent off goods, and said it remains in talks with potential buyers of the chain.

Shoppers will be able to take advantage of up to 50 per cent off toys and greetings cards, 30 per cent off Christmas trees and decorations, 20 per cent off personal gifts and reductions on all entertainment products.

Neville Kahn, Deloitte's reorganisation services partner, said: "We anticipate increased footfall in the stores and have hired additional staff to cope with increased demand. Additional goods have been moved to all stores and further stock will be added in the coming days.

"There is continuing interest in the core Woolworths business and the sale will continue whilst potential buyers finalise their plans for the purchase of the business."

The move comes after Marks & Spencer yesterday held its second 20 per cent off sale in a bid to lure customers. Debenhams has also slashed prices to try to beat the downturn.

Woolworths' sale today comes as attempts to sell the company continue. One potential buyer has already been discounted from taking over the retail giant after Dragons' Den entrepreneur Theo Paphitis yesterday made an unsuccessful bid.

His proposal would have seen the retention of the Woolworths name and acquisition of a large slice of the retail business.

Mr Paphitis said: "It is with disappointment that I confirm that we could not reach a deal.

"My vision was that we could retain the Woolworths brand name through purchasing a large share of the existing retail business. Unfortunately, the constituent parts of Woolworths are more valuable than the whole."

Tesco agreed to buy up to nine Woolworths stores in October and has said it may bid for individual sites, but ruled out a large acquisition. Meanwhile, Waitrose, which bought four Woolworths sites in June, said it was unlikely to buy any more.

Deloitte said talks are continuing with a number of parties.