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Pressure grows on Woolies

12.04.07

Woolworths was facing mounting pressure for radical change after Baugur, its largest shareholder, for the first time openly criticised the troubled retailer's management, reports the FT.

Jón Ásgeir Jóhannesson, chief executive of the Icelandic investment firm, told the Financial Times in an interview that the group should stop spending money on ailing stores and said its management, led by chief executive Trevor Bish-Jones, should "get their act together".

Both Baugur and the board are known to have considered de-merging the group's wholesale and retail arms in the last six months, and selling off a substantial number of stores. Woolworths’ retail division last month reported a full-year loss as price deflation and supermarket competition took their toll. Its wholesale division is facing months of disruption after its purchase of book wholesaler Bertram was referred to the Competition Commission.

FT

Bertrams EUK woolies THE

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