Woolworths applies for administration order
Woolworths Group in the UK has applied to the High Court for an administration order and said talks regarding the sale of its stake in its DVD publishing joint venture were ongoing. The company’s 807 high street stores closed by 5 January 2009 with the loss of 27,000 jobs said that while talks continued on the sale of its 40% stake in the 2Entertain DVD joint venture with the BBC, the company was "no longer in a position to pay its debts". "It is expected that the (administration) application will be heard on 27 January 2009," the company said in a statement. "In the meantime, the directors will continue their negotiations with BBC Worldwide (regarding the sale of 2Entertain) and to take all steps appropriate in the interests of its creditors as a whole." BBC Worldwide said 2Entertain was not itself in administration and that it remains a profitable and well-funded business. "We will now begin talks with the administrator of Woolworths Group regarding 2Entertain's future," BBC Worldwide said in a statement.
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