Stricken British retailer Woolworths is cutting 450 jobs from support operations, administrators Deloitte said today, as they remained locked in talks aimed at finding a buyer for the sweets-to-DVDs chain.
News of the job cuts came as computer games publication MCV reported that US retailer GameStop had made a bid for around half of Woolworths' 815 stores, in a move that would step up competition to UK market leader Game Group.
Woolworths' retail and distribution businesses sank into administration, a form of creditor protection, last week - the biggest British casualty so far of a sharp slowdown in consumer spending.
Deloitte said there had been no redundancies in either Woolworths stores or its EUK distribution operation and that it expected the stores to remain open beyond Christmas, with all staff paid in full.
The retail chain and EUK employ around 25,000 people. The offices affected by the job cuts in Marylebone Road, London, and Rochdale, north-west England, employ over 1,100 staff.
In an article on its website, MCV quoted an unnamed "well-placed source" as saying GameStop would fight "tooth and nail" for a chunk of Woolworths' 815 stores.
The US group has long been tipped as a potential bidder for British games retailer Game Group, which recently tied up with domestic peer GameStation.
"Game frustrated GameStop when it bought GameStation," MCV quoted its source as saying. "Bosses at GameStop had pretty much given up on launching a UK assault - but now, thanks to Woolies, the door is open again." Deloitte declined to comment. GameStop was not immediately available for comment.
The purchase of a large amount of UK stores by GameStop would create a competitive threat to Game Group, at a time when its phenomenal sales growth of recent years has started to slow. It would also remove the prospect of a bid by GameStop for Game.
Reuters