Malcolm Walker, the multimillionaire founder of the Iceland frozen food chain, has reportedly had a bid for Woolworths turned down. It is thought he wants to expand the food side of the Woolworths network, to take on the UK’s c-store operators.
The 800-strong variety store chain is said to have “received a formal written offer from Walker” about three weeks ago. He wants to buy only the store chain and not Woolworths books, music or DVD distribution businesses.
Although Woolworths’ sales sit at around of £1.7 billion a year, it consistently struggles to turn a profit.
Woolworths recently started a pilot project selling Somerfield food in some of its stores, and Walker is thought to see greater potential. National media say he would turn over part of every Woolworths store to food if a bid were ultimately successful.
Walker's Iceland chain is backed by Icelandic investment group Baugur, which owns a 10% stake in Woolworths. The approach is from a consortium headed by Walker with the backing of Baugur.
An emergency board meeting, called by Woolworths when details of the bid leaked out, rejected Walker’s offer, said to be “tens of millions of pounds” as "unacceptable".
Walker’s bid "undervalued the assets" and "involved a complex restructuring which in practical terms is not achievable", said a statement.
Walker was once a management trainee at Woolworths.
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