UK high street retail chain Woolworths saw its shares fall by almost 40% on Wednesday as already nervous investors were further spooked by the rumour that the company may be ready to sell off its 815 stores in the country for a nominal fee of 拢1.
UK high street retail chain Woolworths saw its shares fall by almost 40% on Wednesday as already nervous investors were further spooked by the rumour that the company may be ready to sell off its 815 stores in the country for a nominal fee of 拢1.
The company has seen 90% of its share value disappear since August when it rejected a 拢50 mln bid for the stores from grocery executive Malcolm Walker. The company closed at 2.35 pence on Wednesday, down 38% on the day before.
The Times newspaper said on Wednesday that a potential buyer for the stores was turnaround specialist Hilco and that a deal may be done for a nominal fee, illustrating the seriousness of Woolworths' situation.
In response, Woolworths issued a statement, saying: 'The board can confirm that it is in preliminary discussions regarding a possible offer for the retail business. There can be no assurance that any offer will be forthcoming.'
Woolworths would not comment on who it is talking to or the figures being discussed.
