The wonder of a Woolworths administration

Wednesday 24 Dec 08 - It maybe just me but there is something about the current Woolworths administration that leaves a very nasty taste in the mouth. Maybe it is the cynical timing i.e. maximum stock and creditors leading up to the maximum cash generating period ensuring maximum return to secured creditors, the somewhat cavalier treatment of staff , the vulture like circling by major retail chains looking at taking on the prime store sites or the general fact that this has all the appearance of a liquidation rather than administration.

Whatever it is I think there may be grounds for an official enquiry into the whole process, from examining in particular the behaviour of the secured creditors and the administrators, to seeing if there are ways during an administration to better serve the unsecured creditors, employees, the economy and the wider community. Maybe Woolworths was an idea who time had been and gone, and that this was a mercy killing, but if that is the case I think it deserved to die with a lot more dignity that it has.