Fears grow for retail workers

Dec 11 2008 By Evening Gazette

A STORE closing sale at ailing retailer Woolworths started today, raising fears for almost 350 North East workers at the business.

Administrator Deloitte announced the move at Woolies’ 813 stores nationwide - which employ around 25,000 retail staff - after it had so far failed to find a buyer for the struggling firm.

Deloitte warned that some stores could close before the end of December if no offers for the business emerged.

Woolworths has been in business for almost a century but was forced to call in administrators two weeks ago as debts and losses mounted in a worsening high street climate.

While there were no queues outside the Stockton High Street branch as it opened for business earlier today, customers all expressed sadness at the news.

Stan Thomas, 73, from Stockton, said: "I think its terrible, a real shame. Woolworths has been all over the town, but there’s always been one here."

Linda Harding, 56, said: "I’m really going to be sad. They do really good value children’s clothes which I buy for my grandchildren. I don’t know where I’ll get them now?"

Emma Clayton, 32, from Thornaby, added: "It’s a shame. When I was a kid I always wanted to go into Woolies at Christmas time. There will be nowhere to go really."

Deloitte - which has already launched a massive sale with up to 50% off toys and gifts to generate cash for creditors - had previously pledged that stores would carry on trading beyond Christmas while a rescue deal was sought. Reorganisation services partner Neville Kahn said he was making "every effort" to convert interest in Woolworths into firm offers.

"While we are still seeking bids from interested parties, Christmas is clearly the busiest time of the year for retailers and it is prudent to do all we can to sell existing stock. By moving to a store closing sale and further discounting the stock, we are maximising the sales potential that this period offers."