Jobs at risk as MFI and Woolworths fall

By Mark Potter and James Davey

LONDON (Reuters) - Thousands of British retail jobs were at risk on Wednesday, as furniture chain MFI called in administrators and DVDs-to-sweets group Woolworths was poised to do the same.

MFI, part of which went into administration in September, said the remaining 111 stores rescued in a management buyout would follow suit, raising questions over roughly 1,200 jobs.

Woolworths, one of Britain's best-known retailers, also decided at a board meeting late on Wednesday to appoint Deloitte as administrator to its 815 stores and its EUK distribution business, a source familiar with the matter told Reuters.

Both Deloitte and Woolworths, which employs around 30,000 people, declined to comment.

Britain's retailers are struggling with a brutal downturn in consumer spending amid sliding house prices, rising unemployment and fears the country has already entered a recession.

Several, such as sofa retailer ScS Upholstery, shoe seller Dolcis and clothing chain Ethel Austin, have already gone into administration, a form of creditor protection.

Woolworths, which is Britain's biggest seller of sweets and also holds top five rankings in toys, children's clothing, homewares and entertainment products, would be the biggest casualty so far.

The source said Woolworths would issue a statement confirming the appointment of an administrator on Thursday.