Dragons' Den star Theo lines up bid for Woolies

Published on Monday 1 December 2008 09:06

STRUGGLING retailer Woolworths is set to be sold within a week after a raft of potential buyers lined up bids.

Woolworths administrator Neville Kahn, of Deloitte, said he expected to have a preferred bidder by the end of the week.

Dragon's Den entrepreneur Theo Paphitis is understood to be among the front-runners.

While Mr Kahn refused to reveal the identities of potential bidders, Mr Paphitis, who owns the Ryman stationery chain, is reported to have asked for more information ahead of a potential bid.

Leeds-based turnround investor Endless and private equity groups Cerberus, Sun European Capital and Alchemy Partners are also said to be considering a deal.

While Mr Paphitis is the most high-profile frontrunner, some quarters remain sceptical that he will follow through with the deal.

Iceland chief executive Malcolm Walker and retail restructuring specialist Hilco UK, who both expressed an interest in Woolworths before the retailer collapsed, have indicated they will not be entering any further bids.

Meanwhile, Woolworths' two biggest shareholders – Iranian-born businessman Ardeshir Naghshineh and Icelandic investment group Baugur – are both said to have cooled on pursuing any further buyout deals with the retailer.

Supermarkets including Iceland, Tesco and Asda are in talks to buy parts of the store portfolio, but it appears unlikely anyone will come forward for Woolworth's heavily indebted CD, DVD and books supply arm EUK.