City analysts warn the collapse of Woolworths would have major repercusions on high street
Accountancy Age, 20 Nov 2008
Retail analyst Sanjay Vidyarthi at Dresdner Kleinwort, is warning clients: 'Were Woolworths Retail to be put into administration, the consequences for the rest of the high street could be significant, given Woolworths has sales of £1.7bn.'
Experts agree Woolworths’ days in its current form are numbered. One analyst told The Daily Telegraph: 'Whether Hilco gets it or someone else, Woolworths is not long for this world. In fact, it has to be the longest corporate death in history.'
An insolvency expert said the timing of any move to put Woolworths into administration – should it happen – would be highly tactical. '
The challenge is whether to put it into pre-pack administration before Christmas or after. If you do it after Christmas you get the cash from trading. If you do it before, you let the new owners take the cash,' he said.
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