Woolworths and cashflow

Much discussion that Woolies were not making enough money to justify survival.

Some of the banks and insurers who worked with the shop, are involved in the UK/US and Irish bank insolvency crises. It was these banks who foreclosed on Woolworths retail, who had over-borrowed and were seriously in debt.

Essentially, it was a cashflow problem for both Woolies and the financiers. Nobody appears to believe anyone can pay their debts and cashflow is one of the key problems which destroys businesses in recessions.

Tagged as: bankers, banking, banks, cash flow, debt, economics, economy, employment, global financial crisis, Gordon Brown, poor, poverty, recession, retail, Woolies, Woolworths