Microsoft Sues Woolworths to Reclaim 360s

While the news may have slipped by a lot of gamers here in the US, one of the biggest stories of 2008 across the pond in the UK was the closure of the popular Woolworths chain of retail stores. The closing of the Woolworths chain was a major impact on the UK market, and put the heat on many suppliers now scrambling to get paid by the administrators of the chain’s remaining assets. Even Microsoft has to jump in to keep from getting burned.

According to an article in UK-based The Times, Microsoft is among the list of Woolworths suppliers currently preparing legal action against Woolworths administrator Deloitte in order to take back stock provided to the retailer, keeping Deloitte from having a fire sale on the stock and unloading it at bargain basement prices. Under the UK’s “retention of title” rules, suppliers can not only repossess their own stock if it hasn’t already been paid for, but they can also take back stock that has been paid for in lieu of debts owed.

Late last year, as news of Woolworths’ demise first started to surface, it was reported that the company owed Microsoft north of 26 million GBP (roughly $37.7 million US). For its part, Deloitte has not commented on pending legal action, but claims to be in talks with suppliers to resolve the issues.