The Last Of The Five And Dime

Woolworths has been gone from American Main Streets for a long time, but the bargain shop managed to survive in England. Until now, almost one hundred years after it first arrived.

Sales are down, and it isn't just the recent financial crisis that's done it. One or two months of bad sales won't torpedo a company. A firm already weakened by ongoing problems, on the other hand, cannot survive a hard blow.

As many as 30,000 people could lose their jobs if Woolworths cannot work out a deal with lenders, including GMAC and a branch of the Bank of Ireland. Executives are hoping to cobble together an agreement with Hilco, an investment fund that buys up distressed companies. Hilco will buy the retail side of Woolworths for one pound, and take on 385 million pounds worth of debt. And then hope that Christmas shoppers in search of bargains flood the shops.

With no money in the till to meet payroll, Woolworths may go under, and majority shareholder Ardeshir Naghshineh will be left holding the bag. He's not keen on Hilco's low-budget offer, either, but when suppliers won't supply it's hard to run a store with empty shelves.

At a time when consumers are looking for bargains, the classic bargain store is going out of business. Tough to compete with the likes of Wal-Mart.