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Scramble over Woolies' stock

ENTERTAINMENT companies including EMI and Microsoft are preparing legal action against the administrators of Woolworths to claw back millions of pounds of stock.

Although the shelves in its stores are emptying fast, Woolies' distribution arm, Entertainment UK (EUK), still has CDs, DVDs and computer games worth tens of millions of pounds in its warehouses.

Under "retention of title" rules, suppliers can claim back their own stock if it has not been paid for but, more broadly, they can can claim stock that has been paid for in lieu of debts.

That gives them the chance to resell the merchandise and prevent the administrator, Deloitte, offloading it cheaply.

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business.timesonline.co.uk
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