Axe hangs over high street giant

WOOLWORTHS stores in Oldham and Shaw will be open for business today despite the firm calling in administrators.

More than 30,000 workers at all 815 stores nationwide face losing their jobs after what was considered the cornerstone of shopping for 99 years became the biggest casualty yet of the credit crunch.

Staff at the High Street store in Oldham and Market Street, Shaw — as well as a large contact and distribution centre in Castleton, Rochdale — now face an anxious wait. Money has been ring-fenced to pay salaries.

At a board meeting last night it was agreed that the ailing firm’s retail division and distribution arm Entertainment UK would both go into administration after the chain buckled under its £385million debt.

The company hopes to trade as normally as possible in the coming months under the control of incoming administrator Deloitte.

The firm has been labelled a “lame duck retailer” — losing its market share for years against intense competition from supermarkets — a reason given for why the Government has not intervened to rescue it.

John Gorle, national officer of the shopworkers’ union Usdaw, said the news was devastating for employees.

He added: “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.”

Employment Minister Tony McNulty said Jobcentre Plus was ready to help anyone who lost their jobs.

FURNITURE chain MFI has also confirmed it has called in administrators with 1,500 staff facing job losses.

The company blamed the property market downturn and severe cashflow pressure for its collapse.

Last month, the Chronicle revealed the firm’s store in Green Street was one of 81 MFI outlets in administration and would close.