Big W is a major problem for Woolworths whose supermarket business is under pressure, and like Dick Smith in the past, the discount retailer has built up millions in losses inside Big W, and now want to offload the business that delivered $4.1bn $180M in earnings before interest, tax, depreciation and amortisation, this was down close to 20% on the previous corresponding period.

At IFA 2025 I was asked by an executive from a US linked equity fund about Big W, that is facing increased competition from online and overseas web sites who are selling similar goods to Big W at cheaper prices.

Among them is Amazon who appear to have targeted Big W customers with potential buyers concerned that the business could be another Dick Smith in the making.

Woolworths sold Dick Smith to the private equity firm Anchorage Capital Partners in September 2012 for an upfront payment of $20M, it was later discovered that Dick Smith management had left recoverable money on the books making the deal extremely cheap.

This was the initial cash payment only, and all up, Anchorage Capital paid Woolworths $115 million, including the $20 million, another $21 million in working capital adjustments and $74 million to buy out Woolworths’s rights to a portion of float proceeds.

Analysts at the time claimed that the $115 million looked a great deal for Woolworths to offload a struggling non-core business, particularly given the recent Dick Smith announcements.

As for Anchorage Capital, they sold 78% of Dick Smith into the float for proceeds of $358.1 million, and their remaining 20% holding in September 2014 for $2.22 a share, netting them a further $105 million, making $463.1 million in total.

A further $24 million from the float proceeds was used as part payment to Woolworths, so Anchorage reaped $487 million from selling Dick Smith in a share float.

ChannelNews understands that Woolworths wants Big W off their books by the end of the current financial year with a former Anchorage and Dick Smith executive, telling ChannelNews that they had “Run a ruler over the business” prior to the latest round of speculation.

The Australian claimed today that Seversal groups likely to line up for the business have been approached, not just by investment banks but by representatives of the supermarket group themselves as they desperately try to offload the business that is facing tough competition from the likes of Kmart and Target.

The OZ suggested that the Brett Blundy-backed Best and Less could be a buyer, as could Briscoes in New Zealand.

Anchorage Capital Partners, which owns luxury department store David Jones, is not considering a move claim sources.

This is not the first time that Woolworths has tries to sell the struggling business. Back in 2019, investment bank Citi was throwing out feelers for the business both here in Australia and Internationally.

Prior to that interest was shown by Kohlberg Kravis Roberts, TPG Capital and Blackstone but all walked away from a potential deal.

The Australian is tipping that Platinum Equity and Oaktree would be the more likely buyers of Big W.