12/11/2008 11:06:00 AM
Woolworths starts closing down sale after failing to find a buyer
will start a closing down sale today (December 11) after its administrators
failed to find a buyer for the business.
will add further fuel to fears that the retailer will be targeted by
box-breakers as prices are slashed on mobile handsets.
administrators will continue to search for a buyer for the retailer’s assets
and has said negotiations with ‘a number of interested parties’ are ‘ongoing’.
If Woolworths fails to find a buyer some stores may close by the end of
Deloitte reorganisation services
partner Neville Kahn, said: ‘We
continue to make every effort to convert interest in the Woolworths assets into
firm offers. While we are still seeking bids from interested parties, Christmas
is clearly the busiest time of the year for retailers and it is prudent to do
all we can to sell existing stock. By moving to a store closing sale and
further discounting the stock, we are maximising the sales potential that this
is a major mobile phone retailer in the run-up to Christmas, with an estimated
400,000 handsets sold in the last six to eight weeks of the year.