Budgens owner goes into administration
17-Feb-2017Update: 07/03/2017 - The business and administrator has been unable to secure a buyer, therefore all Budgens stores are to close. 800 employees will be made redundant.
Joint administrator, Mike Denny of PwC, said in a statement:
"Unfortunately, we have been unable to find a buyer and it is not commercially viable to continue trading the stores. "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."
If you are an employee, please watch the video below for information about your rights and what to do next...
17/02/2017 - Hundreds of jobs are at risk at 34 Budgens stores across the UK as its owner Food Retail Operations Limited has gone into administration. Formerly known as Food Retailer Group Limited, it bought the Budgens stores from the Co-op last year.
PwC have been appointed administrators to the company after a company voluntary arrangement proposal was rejected by creditors. Joint administrators are now seeking a suitable buyer for all or some of the company’s stores.
John Gorle from one of the largest trade unions in the UK, Usdaw, said in a statement:
“This is a very disappointing result, which creates a great deal of uncertainty for staff. It appears that a small number of landlords have managed to narrowly block the CVA and we have to question their motives. This vote has put the livelihoods of hundreds of shopworkers on the line, when it appears there was an opportunity, with the support of the property owners, to keep the business afloat with 10 store closures.”
“I will be seeking an urgent meeting with the administrator, when one has been appointed. Usdaw's priorities are to save jobs and keep stores open. We are talking to the Co-op about possible redeployment opportunities for any affected employees and we will explore all avenues to help members seek alternative employment.”
“In the meantime our team of Usdaw reps and officials are providing the support, advice and representation members need at this very worrying time.”
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know. If you have any further questions, please contact PwC who are handling the administration.