Possible sell off of Woolworths to supermarket chain

High street retailer Woolworths could be broken up and sold off to a supermarket under a takeover plan.

Baugur, the acquisitive Icelandic group plans to cut the size of the chain's 800 stores and pass on a large number of stores to a leading supermarket chain if a deal is successful.

It already has a 10% stake in the company and owns a host of other retailers in the UK including Iceland, the frozen food specialist supermarkets, Hamleys toy stores and fashion retailers Oasis, Principles and Karen Millen.

Baugur recently launched a £350 million takeover offer for House of Fraser, the department stores.