The GMB Union, who represent staff at UK supermarket chain Asda, have labelled the rumoured sale of 25 Asda distribution centres as „nothing more than asset stripping”.
Back in October, Asda agreed a £6.8 billion sale of a controlling stake in its business to a consortium led by Lancashire-based brothers Mohsin and Zuber Issa – the billionaire owners of petrol forecourt firm EG Group – and private equity firm TDR Capital.
Earlier this week, reports emerged that the sale would include 25 of Asda’s warehouses, which span seven million square feet in total.
Commenting on the rumours, Roger Jenkins, the GMB’s National Officer, was openly critical:
“This plan is nothing more than asset stripping. Private equity sharks are shaping up to extract as much profit out of the business as they can up front – before they’ve even got their feet under the table. Telling our members this plan ‘will have no implications on colleagues’ is a fantasy designed to try and alleviate the deep anxiety this announcement is bound to cause. The Issa Brothers need to stop and think about the proud history and heritage of the profit-making supermarket they are seeking to acquire.”
Meanwhile the sale announced in October is currently being investigated by the UK’s competition watchdog after the European Commission referred the deal to the UK.
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