Woolworths’ biggest shareholder is vehemently opposing putting the struggling group into administration and is determined to derail plans of selling 800 shops at a nominal price. Ardeshir Naghshineh, the Iranian property tycoon, who has over 10% stake in the business, argued that offloading stores to restructuring specialist Hilco for a meagre £1 is highly detrimental to the interests of either staff or shareholders. He wants the group to look for other options.

Ardeshir held discussions with Woolworth’s bankers GMAC and Burdale on the sale of some of the group’s leases to create cash flow for short term before Christmas. He said that Woolworths’ balance sheet was quite strong and its high street retail division enjoyed a unique position with well recognised and sought after brands.

Ardisher claimed that banks were having open mind on his proposal and were ready to discuss further by involving company. He added that it was the first time that banks were presented with an alternative business plan and they showed readiness to listen.

Hilco was holding discussions since last week over a deal under which Woolworths would sell off its shops while trading by the group’s publishing and distribution businesses would continue. The deal would cover £286m debts, £160m in annual rents and £58m pension deficit.