Sir Alan Sugar buys stake in Woolworths » Communities » 24dash.com

Sir Alan Sugar, the millionaire star of BBC's The Apprentice, has bought a near-4% share in struggling retailer Woolworths, it emerged today.

His stake in the famous high street name is worth almost £2 million at current prices.

The businessman - famous for his grilling of contestants and his "You're fired" catchphrase - sold his Amstrad firm, which makes set-top TV boxes, to satellite broadcaster BSkyB last year.

Sir Alan's Amsprop company has a 3.88% stake in the business after buying almost 57 million shares.

The businessman was unavailable for comment on the move, although it could be Sir Alan thinks he is buying in at the bottom of the market because Woolworths' shares have lost 80% of their value in the past year.

The current consumer squeeze has added to the malaise over the group - hit by competition elsewhere on the high street - leaving it with a stock market value of less than £50 million.

Last month Woolies revealed losses of almost £100 million for the six months to the start of August as it faced "operational issues and strategic challenges" at its retail arm.

The firm has drafted in the former boss of DIY chain Focus to lead a turnaround and is working on its own strategic review.

Its consultants believe it has the potential to build a sustainable business based on its small and medium-sized stores.

But the group is also suffering cashflow pressure as credit insurers take a tougher line on providing cover for suppliers to non-food retailers and distributors.

Today Woolies announced plans to sell leases on nine of its stores to supermarket giant Tesco for up to £9 million. It will use the cash to reduce debt, which stood at £295 million at the half-year.

The group was founded in the UK in 1909, opening its first store in Liverpool. It has around 800 stores in the UK.