The Pesto Wire has another flash - apparently Woolies will go into administration, the Stores part tonight. BBC worlwide, the capitalists armed with the licence fee, will buy another piece and the distribution business will carry on as a profitable venture.
Long negotiations with the banks have failed, as they always do unless a company genuinely truns around its cash flows and builds working capital. Peter Mandelson could not help, much like Darling could not help Northern Wreck raising rates on mortgages today - the government is howling into a gale. Perhaps these setbacks will encourage a little more sobriety and less shouty 'saving the world' mouthiness on their part.
However, I have not yet entirely given upn on Woolies. Hilco was trying to buy the stores to sell some to Tesco and keep the profitable ones. It could buy the leases and warehouses out of administration, much like Barclays bought Lehman's having walked away when the company was alive.
At least Deloitte are the administrators, with a bit of luck it will be Lee Manning who is always very keen and good at keeping companies going.