Beleaguered Woolworths Group confirms it is in talks with BBC Worldwide regarding sale of its 40 per cent share in 2 Entertain.
The retail giant, which saw its shares suspended this morning, established 2 Entertain as a joint venture with the BBC four years ago. The firm has subsequently established itself as one of the UK’s leading video distributors, enjoying huge success with brands such as Doctor Who, Little Britain and, recently, Gavin and Stacey.
It also has a music distribution arm, Demon, and a production company, Banana Split Productions. Woolworths’ current perilous position, however, means it is urgently looking to dispose of all assets and the sale of its 2 Entertain stake to its existing partner in the project is one relatively simple solution
A statement from Woolworths this morning said: “The Board notes recent press speculation in relation to the possible sale of its 40 per cent interest in the 2 Entertain joint venture with BBC Worldwide. The Board can confirm that it is in discussions regarding a possible sale of that interest to BBC Worldwide.
“Whilst discussions in relation to such sales are being pursued with vigour, terms have not yet been agreed. Both sales are subject, amongst other things, to the approval of the Group's lending banks. Accordingly, there can be no assurance that a sale of the Group's retail business or of its interest in 2 Entertain will be concluded.”