Woolworths the next big name to fail?
Restructuring specialists to acquire household name for £1?
Next up to enter the Hilco clutches is the household name value retailer, Woolworths. Some followers of this blog will recall I predicted that MFI would fail when Hilco entered the fray? Well after closing most of the poor stores, MFI has been restructured, downsized and it continues as a much smaller entity. Thousands of jobs have been lost at MFI.
After divesting itself of the 2entertain distribution business and possibly dealing with a large pension black hole, Woolworths will be gobbled up for £1.
What price mass closures of Woolworth stores when rents are due 29th December, watch this space!
It’s likely that Woolworths won’t be the only big name or retail legend that bites the dust. Across the UK landlords are facing demands from their tenants for a change to the quarterly in advance method of rent payments. “Please let us pay monthly to help cashflow”, is the cry!
Well landlords may have to listen because many retailers won’t be able to meet the cashflow demands of paying rent at 29th December if Christmas is a flop… So how many empty stores will there be come dark days of January?