Updated: Woolworths is planning to hold a 'Biggest Ever' Sale on Friday, in a move that will intensify the price war on the high street.

The 800-store chain, which is in administration and being run by Hilco on behalf of Deloitte, will slash prices by up to 50 per cent in what some think is an attempt to get rid of stock before a possible wind down of the company.

Highlights of the Sale will include up to 50 per cent off toys, 30 per cent off Christmas trees and decorations, 50 per cent off all greeting cards, 20 per cent off personal gifts and reductions on all entertainment products.

Stores were updated on the news today.

Deloitte joint administrator and reorganisation services partner Neville Kahn said: "We will launch Woolworths' Biggest Ever Sale tomorrow with discounts of up to 50 per cent on all goods (except concessions). We anticipate increased footfall in the stores and have hired additional staff to cope with increased demand. Additional goods have been moved to all stores and further stock will be added in the coming days."

This morning, Theo Paphitis pulled out of the bidding for Woolworths, saying he was unable to reach a satisfactory deal with Deloitte.

Woolworths' retail arm and its entertainment distribution business EUK fell in to administration last week.

Deloitte said it has received “substantial expressions” of interest in both businesses.

It said it is continuing to hold discussions with a number of parties interested in buying Woolworths and EUK as going concerns, including with a number of new parties that have approached Deloitte in the past few days.

It expects talks to continue into the early part of next week.

Deloitte reorganisation services partner Neville Kahn said: “We are working as quickly as possible to assess proposals. We continue to work hard to ensure that any sale of the businesses, in whole or part, will preserve jobs. We are extremely grateful to the staff and management for their co-operation and support at this difficult time.”