Woolworths directors to be scrutinised by Deloitte
The actions of Woolworths' directors will be reviewed by its administrator Deloitte after creditors questioned whether the retailer should have stopped trading earlier.
At a creditors' meeting on Tuesday, administrator Neville Kahn was asked to look at whether the senior management – including chairman Richard North and chief executive Steve Johnson – should have begun winding up the chain earlier to safeguard more money for creditors.
Kahn said it is "not unusual" for creditors to ask for management to be scrutinised.
Deloitte said it would recover enough money to pay the full £333.5m owed to senior creditors, including one of its main lenders Burdale, although unsecured creditors were "highly unlikely" to receive any of the £1.1bn they are owed.
Around 200 of Woolworths' leases have been sold, and the administrator expects to sell up to 300 in total, before they revert back to their landlords.
Kahn said he expects creditors further down the list – who are owed £100.4m – to get at least part of their money back.
Last weekend Deloitte sold the Woolworths and childrenswear Ladybird brands to Shop Direct for an undisclosed sum. The toy brand Chad Valley was sold to Home Retail Group last month for £5m.
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