// GMB union said Asda owners are stripping assets following plans to sell off their logistics portfolio
// The Issa brothers, who own petrol empire EG Group, recently drafted in advisers to prepare for the sale of up to 25 distribution centres
Asda owners Mohsin and Zuber Issa have been attacked by the GMB union over their plans to offload the grocer’s logistics portfolio.
The union for Asda workers has said that the company’s “sale and leaseback” plans amount to asset stripping.
The Issa brothers, who own petrol empire EG Group, recently drafted in advisers to prepare for the sale of up to 25 distribution centres, including Heston, Dartford, Bristol, Washington, Wakefield, Didcot and Lutterworth.
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The company’s logistics portfolio is likely to include around seven million sq ft of assets, drawing in more than £1 billion.
“This plan is nothing more than asset stripping,” GMB national officer Roger Jenkins said.
“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.”
The Asda deal has still to be approved by the regulatory authorities.
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This type of financial engineering is fairly typical pf pe of which the brothers are tied in with. The private equity partners usually want some funds for possible fire sale assets such as cafe Nero or other brands that will appear in 2021. Remember also pension funds are attracted into these funds at the back end because of the yields available.
Security and croud control is non existent at the ASDA store in Swanley, Kent. Full car parks, no queuing and the only yellow coat saw the one waiting at customer services, it’s one big joke
Well its up to existing and potential customers to support the supermarkets that have good ethical practices as well as low prices. Some of us have consciences still!
Hear! Hear!
I’ve found my local Morrisons (not my nearest supermarket) throughout all this to have been the best ordered and controlled environment, kudos to them for that. I’m sure they have less-good examples about too though.
Stop shopping at asda
Staying closed Boxing Day as a reward to staff. Haha. Have to book it as a holiday so it’s not a reward at all. If you don’t fill in a holiday form you don’t get paid. Same applies to Christmas Day.
Jane – If you are going to post a comment like that you should ensure your facts are correct first. The Asda policy states clearly you do not need to book Christmas day as a holiday. If it falls on your contracted day to work then you will be paid in full without using a holiday. You are also given extra holidays each year to use on bank holidays you don’t wish to work including Boxing day. If you want it off then book it off, if you don’t want to use a holiday then take it unpaid or work it if you want to be paid without using a holiday. You can never please everyone!