No Aid for Retailers

High street retailers who enter financial difficulty cannot expect to turn to the government for help.

This is the assertion made by Peter Mandelson recently in response to the impending closure of Woolworths, reports Reuters.

According to the business minister, in an interview with Sky television, the government's role is to assist firms in making the necessary operational changes in order to survive. But, should they fail to find a suitable restructuring process to resolve any crises, he adds that parliament cannot be expected to bail out uncompetitive firms.

The news comes as Woolworths is holding stock clearance sales across the country and is expected to close after 99 years of trading. Up to 27,000 jobs are predicted to be lost across the chain, although Reuters notes that an 11th-hour purchase could still be possible.

The newswire adds that a number of financial services providers have received government assistance to continue serving their customers. But Woolworths would be the first major retailer to vanish from the high street completely as a direct result of the current turbulence.

As of the morning of December 23rd, the Woolworths website had been replaced with a message simply stating that "essential maintenance" was being carried out. Visitors were invited to check back later to see if the maintenance had been completed.