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The above incidents helped shape the future of Woolworth’s Early on 19 November 2008, The Times first reported that the Woolworths’ retail business was a target for restructuring specialist Hilco, who would buy the retail arm for a nominal; this was confirmed later the same day. This deal would have left Woolworths Group with its profitable distribution and publishing businesses and a reduced debt load. The group’s banks, GMAC and Burdale, rejected the deal and recalled their loans, forcing the group to place the retail business and Entertainment UK Ltd into administration.

Neville Kahn, Dan Butters and Nick Dargan of Deloitte ; Touche LLP were appointed joint administrators. When the company entered administration it had a debt of  385 million. The administrators announced that they aim to keep the company as a going concern over the crucial Christmas period, although analysts fear that any heavy discounting would create a domino effect and drag down other high street retailers. Deloitte later announced they had received “substantial interest” in Woolworths.

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When news about Woolworths being placed into administration became widely publicised, National Lottery operator Camelot Group immediately suspended Woolworths from selling their lottery tickets and scratch cards, as well as preventing claimants from redeeming prizes at the stores. On 5 December Woolworths both recorded their greatest single day takings of  27 million, and axed 450 head office and support staff jobs. Woolworths is also to remain open beyond the Christmas period.

The administrators announced on the 10 December that they were struggling to sell the company as a going concern and as a result some stores may close before the end of the month. They also announced the start of a closing-down sale on the following day (11 December). Talks were still progressing to sell individual stores and leases to a number of retailers, said to include the supermarket chains Tesco, Asda, Sainsbury’s, The Co-operative and the discount chain Poundland.

On 17 December 2008, Administrators announced that all 807 Woolworths stores would close by the 5 January 2009 resulting in 27,000 job losses, unless a buyer is found. Deloitte’s Neville Kahn also said that it was unclear how much of Woolworths’ debts would be paid. Proposed Methodology The method proposed for this research is case study and analytical and statistical analysis.

By obtaining pertinent financial information using records from the companies house and online financial indexes, and using economic snapshots of England provided by the national bureau of economical research and statistics we can point out the factors that led to closing down of the Woolworths stores and predict the possible outcomes and effects of this closure on the political, economical and social situation of the country. For the suggested methodology to work, we will need to analyze details of at least 4 to 6 quarters of financial standing for the company and the 3 to 4 years of the financial situation of England and the world.

We also need to relate the current scenario with previous economic recessions in the past 50 years. It is hoped that the deductions made will be consistent with the incidents of such nature in the past and be accurate enough to depict the scenario of the current economic environment and the eventual effect of the closure on the economy. Example of a case study as per the proposed methodology The following details have been obtained from the Woolworths’ corporate website. The are considered to be accurate and any references made to them are substantiated with further references to major financial organisations with similar data or statistics.

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