Woolworths' future hangs in the balance

The futures of Woolworths' Castleton operation, on Royle Barn Road, and the Rochdale town centre store are in the balance after shares in the company were suspended earlier today (Wednesday 26 November), while talks to save the business from complete collapse are ongoing. Administration is said to be a 'real possibility' if no deal can be struck.

The 99-year old Woolworths Group Plc is locked in discussions regarding the potential sale of its 800-store company to restructuring specialist Hilco UK for just £1.

The firm is also in talks to sell its 40% stake in 2 Entertain, the publisher, to BBC Worldwide, which owns the other 60%.

The Woolworths banks must back the sales before they go through and a top government official ordered the banks to go back to the negotiating table in order to save the struggling retailer earlier today.

Shares in the company have fallen by more than 90% within the year and it recorded a first-half pre-tax loss of £90.8million.