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mark occomore
Joined: 07 Dec 2006
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 Posted: Thu Nov 20, 2008 7:02 pm Post subject: Woolworths Goes Into Administration |
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Nearly a century of shopping at one of the well known retailers could soon be sold for just a quid. Woolworths is in financial difficulty and is up for sale.
http://www.thesun.co.uk/sol/homepage/news/money/article1950227.ece
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I'm not sure how it works and please tell me if I'm wrong, but do the buyers pay the quid and pay off the massive debt?
Last edited by mark occomore on Wed Nov 26, 2008 5:38 pm; edited 1 time in total |
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Ian Robinson
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| Posted: Thu Nov 20, 2008 7:54 pm Post subject: |
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As someone owed money by Woolworths, I hope someone pays off the debt!
This has been a long time coming, and inevitable. You know what I think has led to their downfall? The general messiness of the stores, including the circular tills - how do you queue round a circle? Daft.
Woolies have just got left behind by modern retailing. |
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gfloyd
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| Posted: Thu Nov 20, 2008 8:20 pm Post subject: |
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| Ian Robinson wrote: | | You know what I think has led to their downfall? |
That plus their poor stock control. Half the time they were out of stock on key items.
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mark occomore
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| Posted: Thu Nov 20, 2008 8:27 pm Post subject: |
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| Ian Robinson wrote: |
Woolies have just got left behind by modern retailing. |
There CD sales have dropped because of downloads too. I can't see the name go, but what I gather companies will buy and own pitches on the shops floors? |
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RockitRon
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| Posted: Fri Nov 21, 2008 9:50 am Post subject: |
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Woolworths is in such a parlous state that even its sale for £1 is doubtful, because whoever buys has to take on £350m debt and a pension fund deficit, otherwise the company's lenders may well decide to put it into administration - the only question is when, now or after Christmas.
Woolies is a dinosaur which has been struggling for at least 40 years. Go in one today and it is little changed from what it was then, except that it no longer sells those hot roasted salted peanuts I craved as a boy. It's tatty, and the hot, sweet smell that knocks you over as you cross the threshold is from melting chocolate and pick-n-mix sweets, because the heating is always on, winter or summer.
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Cherskiy
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| Posted: Fri Nov 21, 2008 12:32 pm Post subject: |
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And yet the large one located in a local shopping centre a mile or so from the centre of Newcastle is always heaving with people buying stuff on a Saturday afternoon, as I found to my horror when I visited it a couple of weeks ago. A colleague who lives nearby says it is always busy.
I'd agree with the comments regarding them being outdated, however - the small one on my surburban High Street hasn't really changed that much since I first remember going in with my mother nearly 40 years ago.
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MadeinSurrey
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| Posted: Fri Nov 21, 2008 12:34 pm Post subject: |
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The problem is they just don't sell what people want anymore, and the stock they do have is, frankly, cheap and nasty. With the rise of "pound shops" and their ilk, there really is no place for Woolies any more. I keep hoping our local one will close and become a Weatherspoons! 
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RockitRon
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| Posted: Tue Nov 25, 2008 4:29 pm Post subject: |
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| MadeinSurrey wrote: | | The problem is they just don't sell what people want anymore, and the stock they do have is, frankly, cheap and nasty. With the rise of "pound shops" and their ilk, there really is no place for Woolies any more. I keep hoping our local one will close and become a Weatherspoons! |
The one thing our towns and cities don't need any more of is Weatherspoons, or a Pub With No Beer, to coin the title of an old song.
To illustrate how outgunned Woolies is these days, they ran a commercial over the weekend for the DVD of Mamma Mia, at the special offer price of £9.90, which is cheaper than HMV, Smiths etc. However, when you go shopping in your local Tesco this week you'll find it at £7.99.
Guess who supplies Tesco with their DVDs?
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MadeinSurrey
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| Posted: Tue Nov 25, 2008 4:43 pm Post subject: |
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The one thing our towns and cities don't need any more of is Weatherspoons, or a Pub With No Beer, to coin the title of an old song.
We do, where I live!!
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mark occomore
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| Posted: Wed Nov 26, 2008 5:42 pm Post subject: |
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Depends what happens now? Do they still trade to continue paying off there debts, or is that up to the administrators. It's so sad and heartbreaking for those staff as it's coming upto Christmas.
http://news.bbc.co.uk/1/hi/business/7751064.stm
I see that Card Fair was shut for a while and then the administrators let them trade again. |
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BDG
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| Posted: Wed Nov 26, 2008 9:43 pm Post subject: |
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I agree Mark very sad and worrying for the poor staff. 
Captalism gone mad too many companies taking a slice of the cherry . The sad thing being it is the lower paid workers who are going to suffer. |
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SantaFefan
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| Posted: Wed Nov 26, 2008 10:28 pm Post subject: |
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I have a rather different view of Woolworths. Of course I was younger then, but I used to go into Woolies two or three times a week.
They changed our traditional store to the new look Woolworths and it was never the same after that. Maybe early 80s?
The new random, cramped layout was all over the place and the image seemed tacky plus, they seemed to be selling more old tat!
I don't suppose I've bought anything from Woolworths for 20 years.
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MadeinSurrey
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| Posted: Thu Nov 27, 2008 8:51 am Post subject: |
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There is only one thing I ever buy in Woolies - insoles for shoes! That's it, everything else is just tat or you can get it elsewhere cheaper and/or better. That's their problem in a nutshell. I feel for the staff, especially at this time, but the shops wouldn't be missed. It's a cruel fact of life in today's dog eat dog world!
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RockitRon
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| Posted: Thu Nov 27, 2008 9:57 am Post subject: |
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| SantaFefan wrote: | I have a rather different view of Woolworths. Of course I was younger then, but I used to go into Woolies two or three times a week.
They changed our traditional store to the new look Woolworths and it was never the same after that. Maybe early 80s?
The new random, cramped layout was all over the place and the image seemed tacky plus, they seemed to be selling more old tat!
I don't suppose I've bought anything from Woolworths for 20 years. |
The original American owners sold out in 1982, and it was in decline then. The new management, with money raised from the stock exchange flotation, modernised the stores, getting rid of all those heavy wooden counters, kicked out the foodhalls and cafeterias and brought in more entertainment media, and clothing, particularly the Ladybird brand of childrenswear, which had (still has) a good reputation.
Unfortunately it quickly got to look tacky and cluttered, and was soon overtaken by the likes of Tesco, Asda and Wilkinsons, who are able to offer the same lines cheaper and more attractively (Interestingly, Wilkinsons have recently expanded into food, offering a limited range but highly competitive on cost).
I suspect that there will be an auction of store sites, with the big names doing some cherry-picking, and the entertainment distribution side, which is profitable, should also attract a buyer. I doubt if the name will survive, though, and the majority of the 800-odd stores, and their employees, might find that the New Year is not a happy one.
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RockitRon
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mark occomore
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| Posted: Thu Nov 27, 2008 7:27 pm Post subject: |
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| Camelot are worried if they continue they won't get paid. So in one way it's right for them to pull out. I sure it's good for the staff who will be paid now and before Christmas, but will they continue to trade on January 1st? Administrators makes sure the companies they owe money too are not chasing and taking them to court? I hope they can shift a lot of there goods which I'm sure they will? Still looking bleak for the new year as I would expect smaller outlets will go? |
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gfloyd
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| Posted: Thu Nov 27, 2008 7:53 pm Post subject: |
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| mark occomore wrote: | | I hope they can shift a lot of there goods which I'm sure they will? |
If you are so sure, why the ? 
Brown says he is committed to keeping Woolworths open over Christmas. Is he going to work behind the checkout on Christmas Eve then?
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mark occomore
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| Posted: Thu Nov 27, 2008 8:24 pm Post subject: |
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| gfloyd wrote: | | mark occomore wrote: | | I hope they can shift a lot of there goods which I'm sure they will? |
If you are so sure, why the ?
Brown says he is committed to keeping Woolworths open over Christmas. Is he going to work behind the checkout on Christmas Eve then? |
That would be interesting. Every MP in there counties can help out? It looks like the government are going to help them with a little bit of cash?  I wonder what the workers who lost there jobs at Rover will feel with those words from the PM? |
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gfloyd
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| Posted: Thu Nov 27, 2008 9:04 pm Post subject: |
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| mark occomore wrote: | | That would be interesting. Every MP in there counties can help out? It looks like the government are going to help them with a little bit of cash? I wonder what the workers who lost there jobs at Rover will feel with those words from the PM? |
He kept Rover going til after the election was over
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RockitRon
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| Posted: Fri Nov 28, 2008 9:26 am Post subject: |
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Short of actually giving them some of our money there's not a lot he can do.
I'd be surprised if some of the stock in Woolies doesn't get removed by suppliers frightened that they won't get paid.
If anyone's got Woolies gift vouchers (or is thinking of giving them as Christmas presents) go and spend them now (they won't give refunds for them) as they will be useless as soon as the doors close.
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MadeinSurrey
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| Posted: Fri Nov 28, 2008 9:37 am Post subject: |
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That's is a good point Ron - nobody in their right mind would buy vouchers now, but some folk might have already done so!
Had a chat with a local Woolies employee yesterday, she said she'd had a lot of lovely comments from customers apart from one who was really horrible! What makes these idiots tick?
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RockitRon
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| Posted: Fri Nov 28, 2008 10:35 am Post subject: |
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There's always one... 
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mark occomore
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| Posted: Sun Nov 30, 2008 6:05 pm Post subject: |
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| Quote: | | Dragons' Den entrepreneur Theo Paphitis is among several potential bidders for Woolworths, reports say. |
http://news.bbc.co.uk/1/hi/business/7757222.stm
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I'm sure the brand will be saved. Also it's been reported that Tesco could take over, then they could add there clothing range to the high street. Also smaller woolies stores could be turned into Tesco locals? |
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RockitRon
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| Posted: Thu Dec 04, 2008 9:01 am Post subject: |
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More than likely - 700 of the stores have planning consent to sell food.
Slightly poignant at the moment - Perry Como's "It's Beginning To Look A Lot Like Christmas", currently being used in a commercial for Asda, contains the line "Take a look in the 5 and 10", which refers to Woolworths (in America, of course).
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RockitRon
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mark occomore
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| Posted: Fri Dec 05, 2008 6:11 am Post subject: |
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| My lady who works for the company said ' it could go by Christmas Eve. Tesco apparently pulled out. |
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mark occomore
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| Posted: Wed Dec 10, 2008 6:32 pm Post subject: Woolworths Starts Shuting |
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Those big stores would benefit taking on the stores. They could add their clothing range to the high streets. Even the smaller stores could be closed and turned into locals and keep the staff on?
http://news.bbc.co.uk/1/hi/business/7776113.stm |
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RockitRon
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| Posted: Thu Dec 11, 2008 9:22 am Post subject: |
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All the other stores have reported lower sales and are unlikely to be interested in anything other than cherry-picking a few of the leases in places they do not already have representation.
Most Woolworths are in town centres, areas which the Big Four supermarkets have been falling over themselves to get out of for the last 15 years, although they are now looking for smaller sites, to open convenience-style stores. The Co-operative is busy at the moment digesting its purchase of Somerfield. Poundland and Primark might fill the space, if there's anywhere they aren't already in situ a few doors away.
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Rachel
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| Posted: Thu Dec 11, 2008 10:45 am Post subject: |
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| The Woolworths here might get snapped up by another store - because it's the only shop in town with access from the two main shopping streets and car parks -( It makes a handy short-cut) I think Argos would probably like to move into it from their tiny little place (used to be Dingles) but I don't think any other retail organisation would buy Woolworths - it's not the right climate, if it were , Woolworths wouldn't be in trouble. Tescos are struggling to remain solvent at the moment. They may be the next giant to start shedding. |
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RockitRon
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| Posted: Thu Dec 11, 2008 12:31 pm Post subject: |
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http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3703068/Tesco-goes-half-price-on-1000-product-lines-in-pre-Christmas-sale.html
I think the day Tesco starts to show signs of real distress we shall all need to run for the hills. At the moment their growth has only slowed, in comparison with the other three, who had some catching up to do.
Despite the headline price cutting, there is still ample evidence of price inflation and good profit margins being retained by the supermarkets, at the expense of the suppliers, particularly farmers - it was interesting to read a few weeks ago that Tesco agreed to pay its milk suppliers 0.75p more per litre, then increased the price of a pint bottle in the shop by 3p!
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mark occomore
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| Posted: Thu Dec 11, 2008 5:35 pm Post subject: |
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| Went into our local Woolies today it's like a jumble sale. I know they are having a sale, but some shoppers could at least show some respect to the company and staff. |
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nod
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| Posted: Thu Dec 11, 2008 5:48 pm Post subject: |
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I thought it had been a jumble sale for the last few years  |
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Ian Robinson
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| Posted: Fri Dec 12, 2008 6:06 pm Post subject: |
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| nod wrote: | | I thought it had been a jumble sale for the last few years |
heh. That's what one of their execs said to my boss a few years ago when we tried to sell them some toys - as if it was our fault! |
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mark occomore
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| Posted: Wed Dec 17, 2008 5:38 pm Post subject: |
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It looks like they will all close by 5th January 09. With employment high it's a disgrace something hasn't been done too save woolies.
I think the DHSS will need to open there doors over the festive period to help the influx of people signing on? |
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Rachel
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| Posted: Thu Dec 18, 2008 8:34 am Post subject: |
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| I hope all the Woolies folk are able to find other work soon- it's not a great time for that though. Saving Woolies wouldn't be viable for the Government - looking at it harshly - if Woolies, with a hundred years of experience, couldn't run Woolies at a profit or even to break-even, then Gordon Brown and his crowd wouldn't have a snowball in hells chance of running it. They should have taken the offer from the "Sweet Dragon", in my view the Administrators have messed it up big style - and no doubt they'll expect to get paid. |
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gfloyd
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| Posted: Thu Dec 18, 2008 8:57 am Post subject: |
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| mark occomore wrote: | It looks like they will all close by 5th January 09. With employment high it's a disgrace something hasn't been done too save woolies.
I think the DHSS will need to open there doors over the festive period to help the influx of people signing on? |
Its a lame duck though. Keeping it open is just pouring good money after bad.
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MadeinSurrey
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| Posted: Thu Dec 18, 2008 9:17 am Post subject: |
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Mark, I feel truly sorry for all the staff but it's not a "disgrace" that Woolies hasn't been saved. Market forces and changing times have decreed its fate and I'm afraid that it no longer has a place on the High Street.
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RockitRon
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| Posted: Thu Dec 18, 2008 9:26 am Post subject: |
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| Rachel wrote: | | I hope all the Woolies folk are able to find other work soon- it's not a great time for that though. Saving Woolies wouldn't be viable for the Government - looking at it harshly - if Woolies, with a hundred years of experience, couldn't run Woolies at a profit or even to break-even, then Gordon Brown and his crowd wouldn't have a snowball in hells chance of running it. They should have taken the offer from the "Sweet Dragon", in my view the Administrators have messed it up big style - and no doubt they'll expect to get paid. |
Administrators and liquidators always do - being accountants their sole aim seems to be to close down and wrap things up as quickly as possible, and while there is still the money to pay them their fees. Any thought of consideration for employees and unsecured creditors is fanciful.
Two interesting points from the newspapers today - Woolworth was stripped of its freehold assets before it was demerged from Kingfisher (B&Q/Comet) in 2001 http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3815262/Woolworths-closure-is-disgraceful-former-boss-Sir-Geoff-Mulcahy-says.html
and the Government is considering bailing out Jaguar-Land Rover, which Indian company Tata bought from Ford only last March, to the tune of £1bn. http://www.telegraph.co.uk/finance/newsbysector/transport/3830343/Jaguar-in-line-for-taxpayer-bail-out.html
Car workers' votes obviously worth more than Woolies' ones.
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Rachel
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| Posted: Thu Dec 18, 2008 9:32 am Post subject: |
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| I did wonder about the Jaguar/Landrover bailout- maybe it's because they export - I can't think of any other good reason to bail them out other than the "car is king" thought process that male politicians suffer from. |
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SantaFefan
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| Posted: Thu Dec 18, 2008 10:08 am Post subject: |
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I was under the impression it was against EU rules for government to bail out car companies... didn't this surface over Rover? or has that been conveniently dropped for now..
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