By Matthew Legg Business editor

Last updated 12:54, Wednesday, 26 November 2008

Staff at Woolworths stores across Cumbria are facing an uncertain future after shares in the troubled retailer were suspended this morning.

Familiar sight: Woolworths is in discussions over the potential sale of its 840 high street stores

Talks are underway over rescue plans for the iconic chain which has seen its share value crash by 90 per cent in the last 12 months.

The company operates branches in Carlisle, Penrith, Workington, Keswick, Maryport and Whitehaven.

Woolworths said in a statement that it was in discussions over the potential sale of its 840 stores.

The firm added that it was also planned to sell its 40 per cent stake in publisher 2 Entertain to BBC Worldwide, which already owns the other 60 per cent.

Woolworths said this morning: “Pending the outcome of these discussions and the consequent impact on the company’s financial position, the company has requested a suspension of the trading of its shares on the London Stock Exchange.”

Woolworths opened its first store in 1909 in Liverpool and employs 30,000 staff. It has lost much of its market share as rival budget retailers like Wilkinson grow in popularity.

Woolies has seen its share price crash spectacularly in the last 12 months to stand at just 1.35p. Restructuring specialist Hilco is said to have made an approach to buy the business for a nominal £1 and assume a large share of Woolworths’ debt.

Woolies’ net debt stood at £294.5 million at the beginning of August after a six-month trading period in which it made pre-tax losses of £99.7 million.

Sale talks were being pursued “with vigour”, Woolworths said.

It added: “Deals are subject, among other things, to the approval of the group’s lending banks.”

Hilco is well known in UK retail circles after buying fashion chain MK One this year and subsequently placing it into administration.

It also bought up the debt of Allders in 2005 before the department store chain went into administration.