All Woolworths stores are to close within three weeks

Published on Wednesday 17 December 2008 14:28

ALL Woolworths' stores will shut by January 5, administrators confirmed today.

Deloitte said around 200 of the company's 807 stores would close by December 27, followed by a second batch of 200 on December 30, 200 on January 2 and the final closures on January 5.

The moves will affect 22,000 permanent staff and 5,000 temporary workers, although some will be kept on for a short period.

Deloitte said it had received interest from other retailers for 300 Woolworths stores.

The corporate recovery firm confirmed the closure plan after failing to secure a buyer for the business.

Deloitte is set to flood stores with 50 million extra items over the next week in the final run-up to Christmas. Discounts already running at up to 60% will be even heavier as the administrator looks to clear stock.

Signs in stores will also show a countdown to their final closure dates to encourage shoppers as Woolies' staff brace themselves for redundancies.

Joint administrator Neville Khan said: "I guess it is a very difficult situation for a lot of people, particularly the staff, and we are trying to deal with it in as sensitive a way as possible."

But he raised hopes that jobs could be saved, saying that – as far as possible under privacy laws – Deloitte would pass on the details of current Woolies employees to the buyers of the stores.

Mr Khan also revealed that administrators are in talks over the sale of Woolworths trademark and its Worth It! value brand, meaning that the famous retailer may not disappear from the high street altogether in the long term.

"I think Woolworths will come back on to the high street... whether it will remain into the early part of 2009, that is not so certain," he added.