Last Tuesday night, as it emerged that the chain store's long-standing troubles were turning into a need for action, the firm's senior directors and advisers and those of corporate specialist firm Hilco filed into an office in Woolworths' headquarters in west London, a 1950s block symbolic of the variety store's heyday.

But as Woolworths' fate hung in the balance and hopes of a deal receded, a call came from Baroness Vadera, a minister in Lord Mandelson's Department for Business. A meeting was hastily arranged in Whitehall where it was made clear that the Government was concerned about the fallout for both the retail sector at large and Woolworths' pensioners.

Baroness Vadera urged Woolworths' lenders, led by GMAC and Burdale, a division of Bank of Ireland, to ensure that everything was being done to prevent the retailer's collapse. Although no Government money would be forthcoming, the suits piled back into taxis that evening, and headed back to Woolworths' HQ to continue discussions. But as negotiations dragged on until the early hours of Wednesday morning, it was clear that there was only a slim hope of pulling off a rescue.

Hilco had improved its offer to acquire the retail chain, while a deal had been struck in principle with BBC Worldwide to take the company's share in DVD and CD joint venture 2entertain for £110m.

That cash, together with the debt that Hilco would take on as part of the deal, would leave Woolworths management free to focus on the E.UK business that distributes CDs, DVDs and games to retailers across Britain.

But the concessions were not enough to placate Woolworths' lenders, who were concerned about the company's rising debt and cash flow problems. By late afternoon, exhausted chief executive Steve Johnson emerged from the talks to admit defeat.

"The board worked very hard throughout the night and several nights to reach a satisfactory conclusion," said one source familiar with the discussions. "Unfortunately, they were unable to do that."

Although the board meeting to approve formally administration did not take place until 6pm on Wednesday, the news got out quickly. The official announcement on Thursday morning signalled the end of 99 years of Woolworths, and left people wondering who might be next. The future for even the most venerable names on the high street and beyond looks hugely uncertain.

Shoppers are slamming the brakes on spending, affecting sales of everything from homes and cars cigarettes and crisps. Though Chancellor Alistair Darling hopes to contain the fallout with a reduction in VAT that takes effect tomorrow, few expect the key measure in last week's £20bn pre-budget bailout to boost business prospects. For some firms, it's already too late.

Nowhere is this more evident than on the high street. Within an hour of Woolworths confirming its fate on Wednesday, Britain's biggest furniture retailer, MFI, also collapsed into administration.

They are the biggest casualties so far of the consumer spending slump. Between them, Woolworths and MFI boasted 144 years of history, some £2.4bn in annual sales, and more than 31,000 employees.

Woolies has attracted considerable interest in both its retail and wholesale operations, and could be carved up along those lines. However, even if it survives under new ownership, its plight is still expected to impact the wider retail climate.

There is concern that Hilco, which has been appointed by administrators Deloitte to manage the retail business, will launch a cut-price sale across the chain to raise cash for creditors and offload stock that Woolworths has found difficult to sell.

This is expected to place further pressure on other retailers, most of which have already lowered their prices in the run-up to Christmas.

It is a similar story at MFI. Though administrator MCR is trying to sell the business as a going concern, 26 stores have already been shut, while closing down sales are under way at the remaining 111 outlets.

This will not be good news for rivals such as Kingfisher, Europe's largest home-improvement retailer and owner of B&Q. Reporting a decline in third-quarter UK sales on Thursday, Kingfisher warned that consumer confidence was "shaken" in all of its markets both at home and abroad.

That gloom was further compounded as DSG International, owner of Currys and PC World, announced it was scrapping its dividend after plunging into the red in the first six months of this year. It added that the outlook for Christmas and 2009 was "uncertain", with chief executive John Browett iterating that DSG would take "further action as necessary" to stay afloat.

"We are focused first on trading through the current tough economic environment in which we are prioritising cash generation as well as tightly managing stock, money margins and costs," Browett said.

Among those in acute trouble is high street sporting retailer JJB, which needs to repay a £20m bridging loan to collapsed Icelandic bank Kaupthing by the end of this year.

The chain plunged into the red earlier this year and is in danger of breaching its banking covenants.

Chief executive Chris Ronnie could receive a lifeline, however, if he pulls off the sale of JJB's health clubs to Dave Whelan, the owner of Wigan Athletic Football Club. Whelan, who founded JJB in 1977, is keen to take over the 50-strong chain, but is not interested in the whole operation. He is reportedly considering paying around £100m.

Though all housebuilders are struggling, Taylor Wimpey has been under the microscope as a result of some £1.9bn in debt, including Eurobonds and US private placement notes, weighing on its balance sheet. The shares have been hammered amid speculation that it will breach its banking covenants in the new year, though the firm is trying to sort out a debt-for-equity swap to stave off any such eventuality.

Car manufacturers around the world are also treading through the financial mire. On Thursday, leading UK car makers met with Business Secretary Peter Mandelson to press for a financial package to rescue what is left of the £51bn-a-year industry.

At the front of the charge was Jaguar Land Rover, which employs 15,000 in Britain. The business, which was purchased by India's Tata Motors in March, has seen sales of its luxury cars plummet as the financial crisis has tightened its grip on consumer spending.

Car sales have fallen by more than 20% in each of the last two months, prompting the industry to seek a series of measures that could amount to a multi-billion-pound bail-out by the UK Government. The wish-list includes measures for improving liquidity in the supply chain, support for a European loan package and steps to stimulate consumer demand. The meeting came as Jaguar announced further UK job cuts at its West Midlands plant, where 850 agency workers will be shed.



How household names came unstuck
WOOLWORTHS

The 99-year-old retailer with some 840 shops across the UK.

Problem: Trapped with onerous lease agreements linked to its demerger from Kingfisher in 2001, the company relies on credit to fund operations through most of the year. Lenders were reluctant to renew a £385m asset-backed line of credit for Woolies, forcing the company into administration.

Prospects: Its retail and wholesale operations will probably be split up and sold.

JJB SPORTS

Sports chain founded by Dave Whelan, the owner of Wigan Athletic Football Club, in 1977. JJB is headed by chief executive Chris Ronnie.

Problem: Having plunged £10m into the red, JJB was forced to arrange a £20m bridging loan with Iceland's Kaupthing Bank, which has since collapsed. JJB must repay Kaupthing by the end of this year, and also has a further £85m in loan facilities.

Prospects: JJB is in talks to sell its chain of 50 health clubs back to Whelan, below, in a deal that would reportedly be valued at about £100m.

TAYLOR WIMPEY

Formed last year through the biggest merger in UK homebuilding history. It owns the George Wimpey and Bryant Homes brands.

Problem: The plunge in the housing market has forced Taylor Wimpey into talks to renegotiate the terms of some £1.9bn of debt on its balance sheet. It will probably break its banking covenants on January 1 if negotiations fail.

Prospects: The company is trying to arrange an emergency debt-for-equity swap that will satisfy bondholders and banks.

JAGUAR LAND ROVER

The luxury car maker owned by Tata Motors.

Problem: Jaguar Land Rover is struggling amid the current economic quagmire. It has shed about 1,450 jobs this year, including some 850 agency workers let go on Thursday when it and other UK manufacturers went to the Government seeking billions in assistance.

Prospects: The industry is seeking measures to secure fast access to credit, support for a European loan package and special liquidity arrangements for manufacturers' finance arms.