Woolworths has confirmed that it is in talks about a possible sale of its retail business.
While the company did not identify the suitor, The Times said Woolworths was in discussions with Hilco, the retail turnaround specialist, about the sale of the business for £1.
Woolworths recently rejected a proposal from Iceland retail founder Malcolm Walker. The retailer, which has been a presence on UK high streets for nearly 100 years, has more than 800 stores but has been battered by competition from supermarkets and internet retailers.
A retail deal would leave Woolworths with EUK, its entertainment wholesale division, and 2Entertain, the music and video publishing venture with the BBC.
Today's newspaper report said the talks were likely to hinge on how much of Woolworths' debt Hilco will be prepared to take on. The company's net debt stood at £295m at the start of August.
Hilco is best known in the UK for buying up the debt of Allders before placing the department store chain into administration. It said its actions meant 30 Allders stores could be sold to other retailers, retaining 3,500 jobs within the business.
