Woolworths may shut up its chain of shops!
Woolworths share prices dropped further, causing new speculation of a break-up. It is also expected that when the group discloses its full year results, it may slash its dividend. Woolworths opened its first store on the high street during 1909 and it promised a retail revolution at that time. It vowed to offer good quality goods that everybody could afford. The store offered all the things that it had promised and its fine mahogany counters were filled with all sorts of luggage, photo frames, bowls, buckets and stationery when it opened its another store at Liverpool in 1923. Now, this once powerful retail giant has collapsed and the annual report due this week would make the picture clear.
The price of Woolworths shares has fallen by two thirds when it had separated from its parent company Kingfisher during 2001. The collapse also attracted many value investors like the Apax private equity group which tried a takeover in 2005 but afterward walked away. Woolworths is well-known for its 825 chain of uk shops. However, the media and distribution business that Woolworths own is generating most of the profits to the company. Since the last year, rumors of a break-up have been approaching thick and fast.
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