Woolworths goes online

Woolworths has left the high street but may return online

The Barclay brothers, owners of The Daily Telegraph, are to buy the Woolworths brand and relaunch it online, according to reports on the BBC.

Last week a high court granted an application for an order of administration, and the Barclays have moved quickly.

The chain went into administration in November and more than 800 stores closed a month ago after struggling with debts of £385m.

But now Woolworths and its clothing label Ladybird will get a new life online if the purchase by the Shop Direct Group, owned by the Barclays, is successful.

The brothers already own online retailers Great Universal and Marshall Ward, and Shop Direct is an online relaunch of the Littlewoods brand.

Shop Direct announced last week that it would cut more than 1,000 jobs because of the current economic crisis, although it reported healthy sales growth.

Shop Direct chief executive Mark Newton-Jones told the BBC that he was confident about Woolworths' future.

"This is great news and we are confident that Woolworths, as an online brand, will once again prosper and quite rightly stay at the heart of British retailing," he said.

Details of new product ranges will be released over the next few months, and the online operation should be up and running by the summer.

"Essentially we will sell children's clothing through the Ladybird name and also other products," said Newton-Jones.