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02-Dec-08 11:30 [Pensions]
Woolworths could 'put huge strain' on PPF The Pension Protection Fund (PPF) could be put under a large strain should the situation surrounding Woolworths deteriorate further, it has been stated.
It has been noted that the organisation - which gives the money of troubled pension schemes to the people who invested in it - will have to cover deficits of around £250 million should it be brought under its protection, according to independent pensions consultant John Ralfe.
He told the Daily Telegraph: "The PPF would cap the amount paid out to pensioners but based on these estimates, it would still take a loss of up to £100m - which will be one of its biggest hits to date."
Woolworths' administrator, Deloitte, has promised workers that stores will not close until after Christmas if and when cuts are made, adding that they will also be paid throughout this period.
In the last few days, it was revealed that one of several serious bidders interested in the business was Theo Paphitis, one of the entrepreneurs on Dragon's Den.
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