Woolworths reshuffles management

LONDON (Reuters) - British sweets-to-DVDs retailer Woolworths Plc WLW.L said it had replaced management at its EUK wholesale unit, as an analyst said he expects the company to announce the renegotiation of its bulging debt shortly.

Shares in Woolworths rose 12 percent by 5:56 a.m. EST.

Woolworths said Lloyd Wigglesworth, managing director of the EUK division which sells DVDs and CDs to other retailers and which has been cited as a possible target for disposal along with its 2entertain division, was stepping down.

Wigglesworth will be succeeded by Steve Lewis, currently managing director for retail and distribution at Woolworths.

"There has been a change in management because there was a massive underperformance in that division last year," said broker KBC Peel Hunt analyst Robert Brent by phone.

There has been persistent speculation that Woolworths, a heavily-indebted fallen titan of the British high street with over 800 stores, could be split up with EUK or 2entertain, a DVD publisher it owns 50/50 with BBC Worldwide, put up for sale.

"Woolworths could get 150-200 million pounds ($297-397 million) for its share in 2entertain which everyone is getting excited about," said Brent, referring to its option to sell its stake in March.

There is also speculation Woolworths is about to announce the restructuring of its debt facility with its banks which will allow it to borrow more, although analysts said the credit crisis would make this more difficult.

"When I spoke to the company a couple of weeks ago they were very confident of concluding it," said Brent.