Blogs

Philip Jones is the managing editor of theBookseller.com. He will blog with links and comment about the book business.

26.11.08

Retail Week has just posted a fascinating update on the Woolworth's crisis: "Business Secretary Lord Mandelson has intervened to attempt to save variety store group Woolworths."

Some might say about time. Not only is Woolies an icon on the high street, through EUK and Bertrams it's a vital cog in the book business.

According to Retail Week, Mandelson's office is understood to have contacted Barclays boss John Varley after the bank allegedly threatened not to process Woolworths' payroll this Friday. He is urging the bank to change its mind.

But is the government going far enough? It is happy to bail-out bankers but so far has let retailers go to the wall.

As we stand, Woolies appears to have two options, sell out to Hilco and demerge its remaining profitable businesses, or agree a deal with its bankers and property tycoon Ardeshir Naghshineh, who owns 10% of the business, that could see the group carry on trading through Christmas. Of course there is a third option, whereby the bankers simply pull the plug, and this morning's news made that--momentarily--more likely.

Might the Government be working on a fourth option? Or at least making sure option three doesn't materialise. We are trying to find out.

Anyway, interesting times and hats off to Retail Week for its scoop, which is certain to be picked up nationally.

For those interested in keeping up with the latest, as it gets reported, here is Google News Feed:

The Bookseller.com