Fate of 34 Budgens stores in balance

The company operates 34 c-stores under the Budgens fascia across England, Wales and Scotland and Independent Retail News reported on 20 January that a company voluntary arrangement had been launched to pay creditors and allow it to keep trading.

It was first stated that 12 of the Budgens stores were likely to close, but the fate of all 34 outlets, along with other non-trading stores and the former head office of the Somerfield supermarket business, was in doubt after administrator PwC was appointed last week.

The Food Retailer Operations bought the stores from the Co-op in July 2016, but it has “experienced difficult trading conditions”. Joint administrator Mike Denny said the company had faced “pricing pressures, intense competition and structural change across the food retail sector”.

“We are continuing to trade all 34 stores, while engaging with interested parties for the sites and the other leasehold interests of the company,” he said. “We will work closely with the employees over the coming weeks.”

The Co-op said if no buyer could be found for the stores, it would make “every effort” to find alternative employment for those employees affected.

Source: Independent Retail News