November 28, 2008 / 9:44 AM / 10 years ago

Metrodome set to lose from Woolworths unit

(Reuters) - Film distributor Metrodome Group MRML.L said on Friday it was not sure of recovering the 320,000 pounds owed by a unit of Woolworths Group WLW.L after the DVDs-to-sweets retailer filed for administration of some of its businesses.

Woolworths, which owns Entertainment UK, one of Metrodome’s largest customers, said on Thursday it had put its retail and distribution businesses into administration after talks for the possible sale of its 815 stores ended on Wednesday.

Woolworths was in talks to sell its retail chain to restructuring specialist Hilco UK for 1 pound, and Hilco was expected to assume about 300 million pounds of the group’s 385 million pounds debt.

Metrodome, which swung to a pretax profit of 55,000 pounds for its first half to June 30 from a loss of 319,000 pounds a year earlier, had said in September it was not expecting a strong performance in the second half.

Metrodome shares were indicated down 29 percent at 1.25 pence at 9:30 a.m. British time.

Reporting by Kumar Alagappan in Bangalore; Editing by Gopakumar Warrier

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