Metrodome at risk.....

[julian_craster]

Times Online

November 28, 2008

Film distributor is victim of Woolworths collapse - Times Online





Film distributor is victim of Woolworths collapse

Michael Herman





The fallout from the collapse of Woolworths spread this morning as Metrodome, a UK-listed film and television distributor, warned it risked losing £320,000 it was owed by the fallen retailer.



In a statement, Metrodome said that Entertainment UK, Woolworths’ music and video game distribution arm which was placed into administration alongside the main retail business yesterday, was one of its largest customers.

“At the present time, the board estimates that [Entertainment UK] owes [Metrodome] approximately £320,000. The directors are unsure as to the recoverability of this sum and are seeking clarification on its recoverability and effect on the company,” Metrodome said.

Metrodome shares, which are listed on AIM, fell 29 per cent to 1.25p this morning, valuing the business at just over £1.5 million.

On Thursday Woolworths said that discussions to sell its 800-store retail business had ended in failure, resulting in the need to put both that business and Entertainment UK into administration.

"The boards of Woolworths PLC and Entertainment UK have concluded that there is no longer any prospect of those businesses being able to operate as a going concern," the company said.

Within hours, Deloitte, Woolworth’s administrators had begun seeking offers for Woolworths 815 retail stores and Entertainment UK.

Neville Kahn, the Deloitte partner in charge of Woolworths' sale, said last night he had been approached by a number of potential buyers. One is the man who was Woolworths' biggest shareholder, Ardeshir Nagshineh, an Iranian property tycoon.

However, Mr Kahn, who is the court-appointed administrator, said that he had also received offers for smaller chunks of the portfolio from food retailers.

It is thought that Tesco and Waitrose may want some of Woolworths' shops. Both bought leases from Woolworths this year. Mr Kahn said he had had significant interest in EUK from the company's rivals and from private equity bidders. He said breaking up the business could allow him to save more jobs.

He is under pressure from the Government to minimise job losses. Business Department officials are understood to have been in touch with Deloitte to ask it to do its best to keep the stores trading during the Christmas period.

Mr Kahn said yesterday that all 25,000 employees in work in Woolworths' stores will keep their jobs until Christmas Day at least.

[batman]

There was a bit on the local news about a small manufacturer in Norfolk who makes a product (can't remember what it is) which he sells exclusively to Woolies. It accounts for around 80% of his business. The contract has already been cancelled and he will go out of business and have to lay off his workforce of around 60 people if he can't sell them elsewhere.