"No further comment will be made."
Woolworths said it had determined that its investment in the Warehouse was no longer required as part of its New Zealand strategy.
In January James Pascoe, which is controlled by David and Anne Norman, upped its Warehouse stake from 6.3 per cent to 7.4 per cent.
At that time market sources speculated that the Normans might be interested in having more influence over the Red Sheds operator, possibly at the board level.
James Pascoe's other retail brands include jewellers such as Pascoes, Stewart Dawson and Goldmark.
The Warehouse released a disappointing trading update on January 7, saying adjusted first-half profit was likely to be about $37 million, which would be a roughly 20 per cent decline on the previous year.
Chief executive Mark Powell said poor seasonal weather conditions had forced the Red Sheds to "sacrifice margin to manage seasonal stock sell through".
The Warehouse will release its first-half result on Friday.