On the demise of Woolies and MFI

There is a lot of coverage in the papers this morning about the demise of Woolies and MFI and much of it is linked to the recession.

Before wishing to sound too much like Andrew Lansley and saying that the recession may be good for us,it will result in some of the dead wood of the business world being removed.

Both of these firms have been teetering on the brink for some time and the credit crunch has simply brought to a head that nobody wanted to fund a loss making enterprise.

Woolworths was well past its sell by date,its position on many high streets the result of past glories rather than current trading success.MFI's market strategy has been successfully copied and vastly improved by its many competitors whilst it has become a byword for poor quality and service.

Yes of cause I have nothing but sympathy for the 30,000 employees of Woolies who face a bleak Xmas and new year and the 1500 jobs at risk at MFI.

But sometimes the market must take the lead