High street giant Woolworths has gone into administration while MFI’s future hangs in the balance, leaving employees’ jobs at risk.

Woolworths administrator Deloitte is now looking for buyers for parts of the business.

The administrator says it has received interest from several parties for the firm’s retail arm and its firm's E.UK wholesaling operation in the past 24 hours.

Deloitte, which blames the collapse on cash flow problems, has said shops will stay open past Christmas and employees will continue to be paid.

It is also reported that furniture specialist MFI has also gone into administration.

The organisation is understood to employ 1,000 staff in 110 stores nationwide.

Usdaw, the shopworkers’ union, which represents thousands of members in Woolworths and MFI, said the stores’ collapse was “devastating”.

National officer John Gorle said: “This is devastating news for our members. We will be seeking urgent talks with the administrators to ensure that our members’ future is at the top of their agenda and to understand the proposals for the businesses in the short to medium term.

“Obviously, the ongoing uncertainty surrounding the future of the stores will be of great concern to employees, so we will do everything we can to help communicate the situation to the staff as the situation unfolds.”

“Many of the staff have served the companies for many years and are extremely dedicated and loyal and we will be doing everything we can to help them through this difficult time.”

Principal director of the South East London Chamber of Commerce Steve Nelson said: “I think it will increase nerves in the high street to see perceived giants like that going down.

“It’s very, very sad to see a something like Woolworths go.

“MFI is more recent on the scene but it’s still sad to see a big name like that go down the pan.

“But I don’t think it will necessarily lead to a domino effect and I can’t see it affecting the public’s buying habits too much.”