TV dragon Theo Paphitis pulls out of Woolworths bid

Published on Thursday 4 December 2008 11:00

DRAGONS' Den entrepreneur Theo Paphitis today pulled out of the running to buy parts of the collapsed retail chain Woolworths.

Mr Paphitis, who made his fortune by turning around companies including stationery business Ryman and the Contessa and La Senza lingerie chains, said it had not been possible to reach a deal with administrators from Deloitte.

He had hoped to retain the Woolworths brand name by purchasing a large share of the existing retail business.

Deloitte has reported strong interest in the retail chain, which went into administration last week along with the parent company's DVD, CD and computer games distribution business EUK.

Today's statement from Mr Paphitis raised the prospect that the retail business, which operates from 813 sites, will be broken up.

He said: "Unfortunately, the constituent parts of Woolworths are more valuable than the whole. The administrators have a difficult job to do and I appreciate that they need to get the highest cash value for the business.

"The prime location and size of many of the Woolworths stores makes them an attractive proposition for many larger format retailers such as supermarket chains, so they are very precious sites.

"I am very disappointed that my own proposals have come to nothing but at least I know I've certainly tried. I hope that an alternative proposal succeeds in securing the future for the many Woolworths employees involved."