Brit retailer Woolworths in crunch talks
19 Nov 2008, 1519 Hrs

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London, Nov.19 Woolworths, one of the United Kingdom's largest retailers with 800 shops, is in talks to sell its troubled retail arm to restructuring specialist Hilco.

According to The Telegraph, the talks are still at a "very early stage".

Any deal is likely to see the retail business sold to Hilco for a nominal sum. But even if Hilco and the Woolworths board can agree on a deal they will also have to secure the support of the retailer's lenders, the paper said.

Although best known for its retail business the group's media and distribution businesses - DVD publisher 2entertain and EUK, a specialist distributor - generate the majority of the group's profits.

Hilco specialises in restructuring retail businesses. Earlier this year it bought fashion chain Mk One. Three weeks after acquiring the business Hilco placed the chain into administration. Hilco were also involved in the recent restructuring of MFI. (ANI)