Updated: Woolworths' retail division and its entertainment supply business EUK are being put into administration.

Deloitte will be formally appointed later this evening, following a board meeting scheduled for 6pm.

Woolworths’ wholesale supply business, EUK, is being administrated along with the core stores division.

Woolworths stores will open as normal on Thursday and salaries will be paid as normal and in full on Friday.

The DVD publishing business 2 Entertain - a joint venture with BBC Worldwide - and book distributor Bertrams, will not be put into administration.

The collapse of Woolworths comes almost 100 years after the retailer opened its first store in the country in 1909 and leaves up to 30,000 staff facing an uncertain future.

Restructuring firm Hilco has been attempting to take control of Woolworths’ stores division but the situation was complicated by pension issues and the stance Woolworths’ lenders – Burdale and GMAC – were said to have adopted.

Woolies’ collapse follows yesterday's attempts by business secretary Lord Mandelson’s department to help find a solution.

Ardeshir Naghshineh, the businessman whose 10.2 per cent holding makes him Woolworths' leading shareholder and who had earlier this week put forward a rescue plan for the company, expressed his anger at the outcome.

"I am deeply disappointed that the company has gone into administration," he said in a statement.

"I am also deeply disappointed that the Woolworths board was not prepared to enter meaningful discussions with us despite intensive attempts by us to obtain information from them.

"We are still interested in pursuing a future for the three businesses which are in administration and will be seeking discussions with the administrators."

Earlier this month, Naghshineh commissioned property agent CB Richard Ellis to value Woolworths' store portfolio, believing that it was worth a lot more than the board believed.

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