A group of retailers has expressed their concerns about the potential takeover of UK convenience chain Nisa by supermarket giant Sainsbury's, according to Talking Retail.
Nisa is run as a mutual company, owned by 1,400 members, who work collaboratively to determine future strategy. However, a group of 20 retailers is now said to be calling for the resignation of Nisa CEO Nick Read.
Last week it was reported that Sainsbury's could be close to submitting a formal bid to acquire Nisa for around £130 million. The move is seen as a counter to Tesco’s acquisition of Booker for £3.7 billion, which is expected to be completed this year,
Paul Cheema, who owns three Nisa stores in Coventry and Birmingham told Talking Retail that it is "very important to keep Nisa the way it is".
"I joined Nisa for its mutuality and the great work it does as the best symbol group around and that is what I would like it to stay," he said. "It is a bit early to speculate what will happen, but it is not about the share value, it is about what we are going to get if it is sold off. Is it going to end up as a mutual or as a franchise model?”
Harry Goraya, who has been a Nisa retailer for 14 years, also told the publication that he would be "very reluctant" to give up the mutuality and independence of the organisation.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.