Budgens stores in Norwich, Watton and Wisbech could face closure after owner goes into administration

PUBLISHED: 16:24 16 February 2017 | UPDATED: 19:47 16 February 2017

The Budgens store on Plumstead Road. Picture: ANTONY KELLY

The Budgens store on Plumstead Road. Picture: ANTONY KELLY

Archant Norfolk 2017

Three convenience stores could face closure, with up to 95 jobs at risk, after the owner placed them into administration.

Budgens stores at Plumstead Road in Norwich, Watton and Wisbech have an uncertain future after creditors of the Food Retailer Operations Ltd (FROL) failed to agree to a deal to prevent it.

The Norwich site employs 18 while the Watton store has 23 members of staff. The Wisbech shop has 54 employees.

The stores were previously owned by Somerfield which were bought by the Co-op in 2008 during the financial crisis.

Last year Co-op sold the stores on to The Food Retailer Group, an arm of restructuring business Hilco, and they were rebranded as Budgens stores.

PwC is overseeing the administration of 34 stores affected across the UK and is attempting to find a buyer for the business.

The accountancy giant said “difficult trading conditions” since the purchase of the stores in July 2016 had led to the move.

Mike Denny, joint administrator at PwC, said: “FROL has faced significant headwinds in the form of pricing pressures, intense competition and structural change across the food retail sector.

“We are continuing to trade all 34 stores, whilst engaging with interested parties for the sites and the other leasehold interests of the company.

“We will work closely with the employees over the coming weeks.”

Former owner Co-op has said it will try to support its former employees should the stores close by finding roles elsewhere.

John Gorle, Usdaw national officer said: “The livelihoods of hundreds of shopworkers are on the line and it is crucial that we do everything possible to help keep the stores trading and save jobs by finding a buyer.”

He added: “So far, we have had successful discussions with the Co-op, who are committed to providing support for staff and possible redeployment opportunities if the worst happens.

“We continue to explore all avenues to help members stay in employment.”

The union has also urged National Lottery owner Camelot not to remove its ticket sales from the stores as it fears this could hinder a deal being reached with potential buyers.

5 comments

  • Budgets in Watton is so bad that, against my better principles, I have had to use Tesco!

    Report this comment

    beverley

    Thursday, February 16, 2017

  • Not really surprised since they took over the Watton store the prices have gone sky high and the range on offer is awful,Only been in about 3 times whereas used CO-OP 2to3 times a week.

    Report this comment

    David Gom

    Thursday, February 16, 2017

  • so the co op unloaded these stores 6 months ago, the writing was on the wall then, how much did they sell them for, a £1 ? must have known that were not viable then. is the co op it's self viable ? seems to me they are out of date and out of touch.

    Report this comment

    ted

    Thursday, February 16, 2017

  • I use the Plumstead Road shop a lot and was shocked to hear it was closing. It is the best of the supermarkets in that area and I really hope they find a buyer. The staff are always very friendly and it has a good community feel.

    Report this comment

    Jasmine

    Thursday, February 16, 2017

  • I wouldn't count on the co op helping its former employees it struggles to support its current staff.

    Report this comment

    stoneman

    Thursday, February 16, 2017

The views expressed in the above comments do not necessarily reflect the views of this site

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