Hundreds of Lancashire jobs could be lost after the retail arm of Woolworths went into administration tonight.

Woolworths has stores in Accrington, Blackburn, Blackpool, Burnley, Chorley, Cleveleys, Clitheroe, Lancaster, Morecambe, Nelson, Preston, Rawtenstall and St Annes.

Woolworths confirmed that its retail division and distribution arm Entertainment UK are in administration following a board meeting today.

Union chiefs said they were seeking urgent talks with bosses to demand answers for members at East Lancashire stores.

The retailer has been trading for almost a century. It has 800 outlets and employs 30,000 staff but has racked up net debts of £295 million. In the last year alone, shares in Woolworths plummeted by 90 per cent.

It could be sold for as little as £1, a bid said to have been submitted by restructuring specialist Hilco which bought fashion chain MK One earlier this year.

The Woolworths group itself will not go into administration because its Bertram Books and 2 Entertain ventures are self-funding.

A source close to the negotiations said: “The board of Woolworths retail and Entertainment UK have resolved to take the necessary steps to enter into administration late this evening.”

Ardeshir Naghshineh, who owns ten per cent of Woolworths shares, said he was “deeply disappointed” by the news.

John Gorle, national officer of the shopworkers’ union Usdaw said the news was “devastating” for the staff, adding: “We were hopeful that a last minute deal would be done.

"We will want to meet with the administrators as soon as possible.”

Politicians across Lancashire have said it would be a devastating blow if the Woolworths stores in the area closed.

Coun Mike Ranson, leader of Ribble Valley Council, said: “We would like to retain the store because it allows the people of Clitheroe to shop for cheap goods at a major high street brand.

“I have no idea as to the viability of the Clitheroe site but we would be very disappointed to see it go and would be very concerned about the job losses that would go with it.”

Hyndburn MP Greg Pope said: “It’s very upsetting, and it will be a sad day if Woolworths in Accrington closes.

"Woolworths is a store with a proud history and is immediately recognisable. The staff will also be losing their jobs just after Christmas which is just terrible.

“I think it’s clear that Woolworths has been undercut by the big supermarkets as with the type of products they sell, they are going head to head with Tesco and Asda.

“The sad reality is that even a large chain like Woolworths can’t compete because supermarkets are such giants these days.

“Another supermarket is due to open in Hyndburn, and this is clearly a distressing fact of modern life.

“We’ve seen manufacturing jobs go from Accrington over the past few months and this loss to the retail sector is a very worrying sign.

"2009 is going to be a really difficult year and it is more important than ever to have a government which intervenes to help with these difficulties rather than just standing aside.”

John Gorle, national officer for the union Usdaw representing Woolworths staff, said: “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.”