The Bookseller.com

13th October 2008

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Woolies shake-up fuels break-up talk

30.01.08

The management shakeup at both the Woolworths chain and EUK, reported yesterday, has raised speculation that c.e.o. Trevor Bish-Jones is preparing to break up the group, according to the Telegraph. EUK, which has a turnover of £1.6bn, is growing rapidly, while Woolworths' stores have been struggling due to rising rents and falling sales. The shares rose 2 to 11½p.

The catalyst to the break-up could come in the spring, when Woolworths is allowed to sell its 40% stake in its third division 2entertain, a publishing joint venture with BBC Worldwide. A disposal of this stake, which could be worth up to £200m, would make the splitting of EUK and the retail division a simple and logical task, observers say. "It looks like they are laying the groundwork for a break-up of the group. Trevor is building the buyout teams," said one retail executive.

Bish-Jones denied this was the case.

Telegraph

Bertrams EUK woolies Lloyd Wigglesworth Trevor Bish-Jones