Food Retailer Operations Ltd, which operates 34 convenience stores trading under the Budgens brand in the UK, has been forced to enter administration.
Michael Denny, Robert Moran and Matthew Hammond of PwC were appointed joint administrators of the business last month.
Food Retailer Operations also held the the leasehold interests in a further 36 non-trading stores, two non-trading properties and the head office of the former Somerfield business.
It acquired a number of stores from the Co-op in July 2016, and since that time, has 'experienced difficult trading conditions,' PwC said in a statement. 'This resulted in the Company being placed into administration despite sustained efforts to make the business more commercially viable.'
Store Closures
Nine stores in the group were closed last weekend, with PwC stating that the remaining 25 stores will be forced to close over the next two weeks, resulting in the loss of 611 jobs.
“Unfortunately, we have been unable to find a buyer and it is not commercially viable to continue trading the stores," said Mike Denny, Joint Administrator, PwC.
"We are working closely with the Co-op, USDAW and the relevant government agencies to ensure that all employees receive the maximum levels of practical and financial support through the redundancy process.”
The closures include stores in Blackburn, Norwich, Ludlow, Aberystwyth, Dagenham and Greenwich.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
