Mixed news from Woolies with staff axed as prices are slashed

Published on Friday 5 December 2008 20:30

WOOLWORTHS is cutting 450 jobs from support operations, administrators Deloitte said yesterday – as it also revealed it was slashing 50 per cent off goods at the sweets-to-DVDs chain.

The massive discounting drive follows Thursday's news that Dragons' Den entrepreneur Theo Paphitis was unsuccessful in bidding for the troubled retailer.

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

Neville Kahn, Deloitte's reorganisation services partner, said: "We will launch Woolworths' Biggest Ever Sale with discounts of up to 50 per cent on all goods, except concessions. We anticipate increased footfall in the stores and have hired additional staff to cope with increased demand."

Extra goods have been moved to all stores and further stock will be added in the coming days.

Kahn added: "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."

Highlights of the sale will include up to 50 per cent off toys, 30 per cent off Christmas trees and decorations, 50 per cent off all greeting cards, 20 per cent off personal gifts and reductions on all entertainment products.

Separately, US computer games retailer GameStop denied a report by computer games publication MCV that it had made a bid for around half of Woolworths' 815 stores.

• Department stores group Debenhams is extending its "up to 20 per cent off" pre-Christmas sale over the weekend, it said yesterday, adding to the frenzy of discounting on Britain's shopping streets.

Debenhams held its first pre-Christmas sale two weeks ago, and also extended that by a further two days.