Michael Denny, Robert Moran and Matthew Hammond of PwC, who were appointed in early February as joint administrators of Food Retailer Operations Ltd (FROL), which operates a number of Budgens high street stores, have now said all stores are to close with the loss of over 600 jobs
FROL operated 34 convenience stores across the UK, which trade under the Budgens brand and employ 815 people. It also held the leasehold interests in a further 36 non-trading stores, two non-trading properties and the head office of the former Somerfield business.
Since its acquisition of the stores from Co-op in July 2016, PwC said the company had experienced difficult trading conditions. This resulted in the company being placed into administration despite sustained efforts to make the business more commercially viable.
Following their appointment, the administrators have been assessing interest in the business. As a result, following the closure of nine stores at the weekend, the remaining 25 stores will cease trading over the course of the next two weeks with the loss of the remaining 611 jobs.
Mike Denny, joint administrator and restructuring director at PwC, said: ‘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.’
