After Woolworths have failed to find a buyer for its business they are being forced into holding closing down sales nationwide. The need for a new buyer has arisen due to the companies decline into administration with its £385m of debt. It’s thought that if a buyer isn’t found before the end of December some stores may close causing hundreds of job losses. This comes after administrators of Woolworths cut 450 jobs in support operations at Marylebone Road in London and Castleton in Rochdale. With so many jobs on the line, the government has had to step in once again, in an attempt to ensure that Woolworths stores remain open over the Christmas period, saying “The important thing is in the long-run that employees in this company – where the businesses and the shops are not going to stay open in the longer term – can get other jobs quickly.” Consultations will be held with the retailers 30 000 staff over support available in the case of redundancies. There are currently talks with Sainsbury’s, Asda, Tesco, the Co-op and discount chain Poundland over the sale of Woolworths’ store leases. So with all the signs of the current financial status of the retailer proving it’s going under it proves that we are still in the thick of the current financial crisis, and that there are still hard times to come.
