Business News Retail

Woolies share trading on hold

By | Published on Wednesday 26 November 2008


Elsewhere in sort-of-music retail news, trading in shares in Woolworths has been halted so the company can consider its options.

As previously reported, the Woolies board are said to be considering an offer by an outfit called Hilco to buy its retail chain. Well, I say buy, they’d take on the retail chain’s not inconsiderable debts. New reports suggest the Woolworths board is also in talks with BBC Worldwide, with whom it co-owns the 2 Entertain DVD business, regarding the commercial wing of the Beeb buying them out.

With the retail firm’s share price tumbling, trading in Woolies shares has been halted on the London Stock Exchange, pending a statement from the company regarding the possible sale of its high street stores and its 40% stake in 2 Entertain.

If both sales did go through it’s not clear what that would mean for the company’s other main asset, the one of most relevance to the music industry, CD and DVD distributor eUK. Though the most successful bit of the Woolworths empire, eUK has had cash flow issues recently with some suppliers refusing to give the distributor credit because of fears Woolworths at large could go under. With that in mind, eUK may be better off if it is cut free from its high street based sister company. That said, the CD and DVD distribution sector isn’t as strong as it was either.