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Arena Magazine 2006 Issue 2 March April |
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Somerfield sells off Kwik Save
Usdaw has stepped in to support around 7,000 Kwik Save staff after supermarket group Somerfield announced plans to break up the convenience store chain.
As part of the deal Somerfield will retain and convert 102 Kwik Save stores to its own fascia, 171 stores and the Kwik Save name have been sold to a new company, 33 stores have been sold to other retailers, the remaining 78 are up for sale.
However, the Kwik Save name will not disappear from the high street as Back To The Future, the company which has bought the 171 stores, intends to reposition the brand as a leading discounter.
Other stores have been sold to a number of other discounters thought to include Netto, Aldi, Costcutter and Lidl.
"Our members have been informed and fully briefed about the situation," said National Officer Joanne McGuinness. "Our officials will be working very closely with staff in stores to make sure they fully understand the implications for them.
"This is a complicated deal but we welcome its main aim of securing around 6,000 jobs.
"There is some good news for those members who will work in the new Somerfield convenience stores as the company is confident the rebranding will secure the long term security of jobs in those outlets.
"Members involved in the sale to the new owners, will have their terms and conditions legally protected by employment transfer legislation. We have already contacted the new owners to find out their plans for the staff, and to discuss how we can help take this new company forward.
"Once the new buyers for the 33 stores not covered by the Somerfield and Kwik Save deal are announced, we'll be seeking urgent talks with them to make sure our members' rights are protected.
"For Usdaw members in the remaining 78 stores where staff are not transferring to new owners we are mindful this is a very difficult time for them and we will be doing all we can to make sure they get the very best redundancy package if they are to close.
"We welcome Somerfield's commitment to try and redeploy staff at other nearby stores. Our members can rest assured Usdaw will do everything it can to help members at what is a very unsettling time for many staff."
- A consortium led by property tycoon Robert Tchenguiz, which included Apax Partners and Barclays Capital, took over Somerfield in December last year in a £1.1 billion deal.
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