Woolworths, the high street chain has reported group losses of almost £100 million for the six months to the start of August 2008.

Sales for the retail business were £660.7 million in the half-year, down 3.2% on a like-for-like basis, while the company’s entertainment wholesale and publishing arm – including its BBC Worldwide joint venture 2entertain – posted flat sales of £446.3 million.

Overall group losses of £99.7 million compared with a deficit of £63.8 million a year earlier. Operating losses for the retail business, which trades from around 800 stores in the UK, were £69.5 million.

While the group generates the majority of its business in the run up to Christmas, it is thought that the current credit crunch will affect sales this year.

Last month the Woolies board rejected an offer for about £50million for its 815 stores from investment group Baugur and the founder of the Iceland food chain Malcolm Walker.

The chain, which has more than 800 stores in the UK, has been squeezed by the supermarkets, the specialist players and online retailers.

Like the majority of other British retailers it has also suffered as consumers curb spending due to higher fuel, food and mortgage costs.