From Primark to Tesco, retail rivals eye carcase of fallen idol Woolies

FOOD retailing giants, cut-price retailer Primark and discount chain Semichem were touted as potential buyers of Woolworths' assets last night as administrators battled to salvage what they could from the wreckage of the fallen high street favourite.

The names of possible bidders for some of Woolworth's prime sites emerged on a day of unprecedented gloom for the UK's retail sector.

Yesterday DSG International, owner of Currys and PC World, swung to its first interim loss for at least 25 years and axed its shareholder dividend.

And Kingfisher revealed that sales at its DIY business B&Q were down nearly 9 per cent in the 13 weeks to 1 November.

Yesterday Woolworths' administrators Deloitte confirmed interest in both the company's retail and wholesale businesses "from a number of parties", but refused to name them.

They are thought not to include anyone who wants to retain the core Woolworths brand but a number of well-known names emerged as possible buyers for some of the assets.

One retail industry specialist told The Scotsman that Primark, the cut-price fashion clothes retailer, was one of the few high street players "still in expansion mode" so it could be interested in picking up "some of the bigger stores Woollies has".

The big supermarket groups are also thought to be studying the situation, particularly for their niche operations like Tesco Express and Sainsbury Local.

One well-placed source said: "The supermarkets have got to be interested.

"A minority of the 800 Woolies stores – probably less than 50 – have permission to sell food. That makes them very attractive and a quick way for supermarkets to expand."

However, Waitrose, which picked up four Woolworths leases earlier this year, appeared to rule itself out yesterday.

Speaking at the opening of a new store in London which had previously been a Woolworths, managing director Mark Price said: "We did look at the entire estate when we took the four. There may be one or two others, but I doubt it."

It is thought Woolworths' smaller stores might attract discount retailers north and south of the Border, with Semichem, the Scottish chemist chain, and general merchandise group Poundland seen as potentially in the frame.

Deloitte reorganisation services partner Dan Butters said: "We are working hard to ensure that any sale of the business, in whole or part, will preserve jobs."

Adding to the sense of crisis, Prime Minister Gordon Brown weighed in to promise government help.

He said: "We are determined to help people who are facing job difficulties, whether it is at Woolworths or at any other company.

"We will step in quickly to help people get new jobs."