Co-op to sell 300 stores
The Co-operative Group may have had a rebrand where they went back to their old logo, and were putting £4 a month in people's accounts, but things are still tight there.
The group is going to sell nearly 300 convenience stores to their rival McColl's. The good news is that there's not going to be a huge amount of job losses, with around 3,800 employees transferring over as part of the deal.
The exact number is 298 shops, and Steve Murrells, chief executive of Co-op Food, said: "The Co-op Food business continues to move forward with a clear momentum and purpose to deliver a compelling and convenient shopping experience for our millions of customers and members."
"Today's announcement is completely in line with our strategy, as these stores did not allow us to provide a sufficiently compelling own-brand offer for our members going forwards. The proceeds will be reinvested to drive sustainable growth for our members and I'm delighted that all 3,808 colleagues will transfer to McColl's on the same terms and conditions."
McColl's reckon that the initial acquisition is going to take place in January 2017.
Does that mean less Co-op shops for you to spend your money in? Well, the group have been saying that they are looking at 100 new store acquisitions, and they'll be reinvesting their money in that, as well as other elements of their strategy.
Jonathan Miller, chief executive of McColl's, said: "I am delighted to announce the acquisition of 298 quality convenience stores in a transformational deal for McColl's. This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers."
"These stores are profitable, well-invested, and the perfect size for our operating model. We expect the transaction to be significantly earnings enhancing for our shareholders."
"I look forward to welcoming all of our new colleagues to the business."