Big stores in survival bid

Two of the biggest names on the high street were today in a desperate battle for survival.

Woolworths' shares were suspended on the Stock Exchange as last-ditch rescue talks continued. And MFI, which has axed stores and sacked workers across the region in the past week, could be forced into administration within days.

Woolies, which has been in business for almost a century, said it was in discussions over the potential sale of its retail outlets and its 40 per cent stake in the 2 Entertain publishing joint venture with BBC Worldwide.

But the company added that both deals were subject to the approval of its banks and said "there can be no assurance" that the sales would be completed.

Shares in Woolies, which closed last night at just 1.22p, were suspended this morning because of uncertainty. It has around 800 stores, with branches in all areas of the West Midlands.

MFI, which was founded in 1964, is believed to have laid off workers as it struggles for survival, including some drivers operating in the West Midlands. It has been caught up in a row over upaid rents and could go into administration.

The company has more than 1,000 staff and runs more than 100 UK stores.

Chief executive Gary Favell led a management buyout of the firm at the end of September, when over a third of the stores were closed as part of the move.

Administrators at Kroll closed stores in Dudley, Kidderminster and Stafford with the loss of more than 25 jobs, while the Birmingham Home Delivery Centre in Dartmouth Road, Smethwick, closed in October leaving 78 staff out of work.

Shopper Karam Chand, aged 39 from Lower Street, Whitmore Reans, who was at Wolverhampton's MFI today with wife Vatish and two-year-old child Banita, said he was put off by the uncertainty, adding: "We're looking for a sofa but are not going to be buying today."