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Microsoft wants its games back off Woolies

Company prepares to take legal action

Big name companies including Microsoft and EMI are preparing legal action against Woolworths' administrators in a bid to reclaim millions of pounds of stock.

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Woolworths' distribution arm, Entertainment UK (EUK), still has tens of millions of pounds worth of games, CDs and DVDs in its warehouses, despite the fact that the last operating Woolies stores are due to shut tomorrow.

'Under "retention of title" rules, suppliers can claim back their own stock if it has not been paid for but, more broadly, they can claim stock that has been paid for in lieu of debts,' says The Times.

If successful, the strategy would give the likes of Microsoft the chance to resell the goods, rather than seeing the administrator, in this case Deloitte, shifting them on the cheap.

Woolworths went into administration late in November as the group collapsed under £385 million of debt. It was later reported that Nintendo was owed £21 million and Microsoft £26 million from EUK.

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