Woolworths will have to spend hundreds of millions of dollars more before shareholders see the back of the Masters disaster.

The five-year money-guzzling hardware venture has already cost about $3 billion and a tanking share price.

Last month the board pulled the pin, but Woolworths will still be handing over fistfuls of cash as it enters the tricky extraction process, says CLSA head of consumer research David Thomas.

"The view from our perspective this is not the worst and this is not the end of the road for Woolworths in terms of downgrades," he said.

"We certainly think there's going to be further cheques written."

Just how much will depend on what opportunities to offload the business are open to Woolworths.

Once Woolworths finally agrees on a price, expected to be upwards of $500 million, to buy out partner Lowes, it then has two options open to it: either sell it as a going concern or shut it down.

Selling it is clearly the best option, for employees, for shareholders and Woolworths management.

But it is unlikely anyone will take the chance, according to David Thomas.

"I don't think there is a retailer in the world that would step in here with the losses that its making — up to $250 million a year — and where Woolworths and Lowes have both failed going up against a very strong market leader in Bunnings."

Liquidation only path available: analysts

Given the $3 billion that has been poured into setting up the business it is expected that private equity firms will be having a sniff around the carcass to see if any value can be extracted.

US firms KKR, Blackstone and TPG have all been rumoured to be interested. TPG has indicated to the ABC that it is not interested.

KKR and Blackstone say they do not comment on speculation, however even if they do put forward an offer it will not be generous, given Woolworths' determination to sell and the well-publicised problems with the business.

Several analysts the ABC have spoken to, including Mr Thomas, believe Woolworths will not be able to pull off a sale and the only path available is liquidation, which in itself will be a costly exercise.

"You've got significant lease liabilities that are currently owed to landlords that will need to be paid and need to be got out of," Mr Thomas said.

Sorry, this video has expired Watch Elysse Morgan's report

"You've clearly got to liquidate some of the assets where you've got a very forced seller and very aware buyers of that."

About a billion dollars worth of paint, plasterboard, ladders and other products that failed to wow customers will have to go along with the properties that management paid handsomely for, in some cases.

CLSA estimates another $500 million will be spent in the shutting-down process.

So more pain for shareholders, and that will be made clear when Woolworths opens its books for inspection on February 25, with profit expected to be down about 30 per cent on the prior year.

Mr Thomas believes it will be at least 12 to 18 months before Woolworths is again hitting its strides.

"Put it this way: I wouldn't be in a hurry to be buying Woolworths shares," he said.

UBS also has a sell recommendation on the stock.