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Morrisons In £220m Logistics Sale And Leaseback Deal

Morrisons has completed a £220 million (€255.3 million) sale and leaseback deal for seven logistics properties with asset manager ICG, the British supermarket group said on Friday.

It said it will lease the properties back for up to 25 years, adding that the transaction will help finance further investment in the business, including five new supermarkets next year.

Morrisons, which recently lost its status as Britain's fourth largest supermarket group by market share to discounter Aldi, has been owned by US private equity firm Clayton, Dubilier & Rice for just over a year."

McColl's Store Closures 

Last month, Morrisons announced that it is planning to close 132 McColl's convenience stores that have no realistic prospect of making a profit in the medium term, it said on Tuesday, putting 1,300 workers at risk of redundancy.

The majority of the closures will take place this year, while 55 stores that include a Post Office counter will close next year.

Morrisons bought the McColl's chain out of administration in May but the deal was not cleared by the competition regulator until last month.

Alternative Employment

It said that every affected worker would be offered alternative employment at a nearby McColl’s store, Morrisons store, logistics operation or food-making centre.

McColl's currently trades from 1,164 stores, 286 of which trade under the Morrisons Daily fascia.

Morrisons' plan is to have more than 1,000 stores trading as Morrisons Daily within two years.

Read More: UK's Morrisons To Close McColl's Stores; 1,300 Jobs At Risk

News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.

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Enjoy the most important stories from the world of Irish grocery retail, curated for you by our team of experts every week.
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