Woolworths: Dragon says ‘I’m out’

Dec 5 2008 by Peter McCusker, The Journal

DRAGONS’ Den entrepreneur Theo Paphitis will not be buying parts of the collapsed retail chain Woolworths.

Mr Paphitis, who made his fortune by turning around companies including stationery business Ryman and the Contessa and La Senza lingerie chains, said it had not been possible to reach a deal with administrators from Deloitte. He had hoped to retain the Woolworths name by purchasing a large share of the retail business.

Deloitte has reported strong interest in the retail chain, which went into administration last week along with the parent company’s DVD, CD and computer games distribution business EUK.

Mr Paphitis raised the prospect that the retail business, which operates from 813 sites, will be broken up. He said: “Unfortunately, the constituent parts of Woolworths are more valuable than the whole. The administrators have a difficult job to do.”

He added: “I am very disappointed that my own proposals have come to nothing but at least I know I’ve certainly tried. I hope that an alternative proposal succeeds in securing the future for the many Woolworths employees involved.”