Dragon in to save Woolies

At last one of my predictions look like they are coming true.

The Dragon who has a knack of bailing out poor performing companies and turning them into hits is Theo Paphitis, the Cypriot born millionnaire who once was Chairman of Millwall. In fact students will see his brilliant episode of Back to the Floor in the very near future.

Theo seemed the ideal man to take on the failing Woolworths company. I hope he does save at least some of the famous stores, if only because it is a name symbolic with British childhood. Woolie's pic and mix is legendary.

30,000 staff could be made unemployed if Woolworths were to go under. Including a current S6 pupil of mine, and what a terrible Xmas that would be for everyone.

How will Theo turn it around?

Some analysts have blamed Woolworths poor positioning as their main problem. They were slow to react to the 'One-stop shops' like Tesco and Asda where you can buy stationery, chocolates, DVDs and CDs... many of the items Woolies stocks. They were cheap but not cheap enough. And they couldn't rebrand into being a pricier store, because public perceptions would not change overnight.

Theo may well streamline the less profitable stores and cut down on employees, stock and the products offered. He obviously could use his own Stationery stores to supply Woolworths and perhaps even some of his Dragons' Den investments.

Can he turn it around? I think he could do, but one thing is for certain. Woolworths will be a different and smaller outfit this time next year if it is to be saved.