Woolworths to open despite jobs woe
All 800 Woolworths stores are opening for business despite the company calling in administrators.
But tens of thousands of jobs will be at risk after the historic firm became the highest profile victim of the credit crunch and a looming recession.
At a board meeting on Wednesday night it was agreed that the ailing firm's retail division and distribution arm Entertainment UK would both go into administration.
It is understood the company, which has been in business for almost a century, hopes to trade as normally as possible in the coming weeks and months under the control of incoming administrator Deloitte.
Woolworths Group itself will not go into administration as its Bertram Books and 2 Entertain businesses are self-funding.
The developments have put tens of thousands of jobs under threat, although the salaries of the company's 30,000 staff are guaranteed for Friday.
John Gorle, national officer of the shopworkers' union Usdaw, said the news was "devastating" for employees.
He said: "We will be seeking urgent talks with the administrators to ensure that our members' future is at the top of their agenda and to understand the proposals for the businesses in the short to medium term."
Ardeshir Naghshineh, who owns 10% of Woolworths shares, said he was "deeply disappointed" and would be seeking to meet the administrators as soon as possible.
"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," he said.
