57 jobs lost as Budgens stores close in Newport and Ludlow

Budgens stores in Newport and Ludlow are closing after administrators failed to find a buyer for the stricken business.

Food Retailer Group, an arm of business restructuring specialists Hilco Capital, appointed PwC as administrator last month but the accountancy firm has failed to find a buyer for the group.

A total of 815 staff from the 34 affected shops have begun the redundancy process, including 27 who had worked at the Ludlow branch, and 30 employed at Newport.

Another Budgens store in Bridgnorth remains safe because it was not part of the group which collapsed.

The store in High Street, Newport, is due to close on Thursday, while the shop in Ludlow?s Upper Galdeford has already shut its doors.

Mike Denny, joint administrator 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."

Food Retailer Group bought the former Somerfield stores from the Co-operative Group in July.

At the time the firm said "there are no planned redundancies" and stores will continue "trading as usual".

It also holds leaseholds on another 36 stores which are not currently trading, two non-trading properties, and the head office of the former Somerfield supermarket chain.

The company?s collapse does not affect other stores in the Budgens chain, including Shropshire?s other outlet in Bridgnorth, as these are not operated by Food Retailer Operations.

Others in the region that are affected include branches at Weoley Castle in Birmingham and at New Invention at Willenhall, the closures of which will make 26 and 30 people redundant respectively.

Food Retailer Group had attempted to address its problems in January when it put together a creditors? voluntary arrangement, which allows struggling companies to restructure their debts with the consent of their creditors.

That had been expected to lead to the closure of a number of stores, including in Ludlow.

But the administration saw that arrangement replaced, and the closure of the 34 stores in its estate was a result of the failure to find a buyer under the process.