Woolworths could fall into administration in a matter of days unless it completes a deal to sell its retail business to restructuring specialist Hilco, according to sources close to the company.
A lack of sales in the crucial pre-Christmas period is expected to push the company into administration unless a deal can be made.
Over the weekend Hilco improved the terms of its offer to buy Woolworths' struggling retail arm, by agreeing to take on£300 million of debt, an advance on the£265 million originally tabled. This would leave the group with EUK and 2Entertain, as well as£85 million of debt.
However, Woolworths’ biggest shareholder, property tycoon Ardeshir Naghshineh is expected to meet the retailer’s management and banks today to discuss an alternative rescue plan to Hilco’s.
He plans to raise cash by selling a number of leases on its stores and then moving the remainder of the outlets upmarket.
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