Co-op department stores to be sold
CO-OP department stores across the East of England are to be sold to a specialist retailer, it can be revealed today.Talks are still ongoing with Vergo Retail Ltd to confirm the takeover of the Co-op's department and home stores business.
CO-OP department stores across the East of England are to be sold to a specialist retailer, it can be revealed today.
Talks are still ongoing with Vergo Retail Ltd to confirm the takeover of the Co-op's department and home stores business. The firm had considered closing four of its stores in the region and opened talks with Vergo about taking them on, however the talks were then extended to cover all the Co-op's department stores.
None of the 350 employees at the stores are expected to lose their jobs as these should be safe under The Transfer of Undertakings (Protection of Employment) Regulations, with completion planned for July 4 this year.
Richard Sampson, chief executive of the East of England Co-op, said the sale of the department stores mean the Society can concentrate on its profitable food stores across the region.
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He said: 'We now need to concentrate our efforts in other parts of our business where we have a strong presence. These stores represent less than six per cent of our total Society business and we will continue to operate more than 200 trading outlets and other services across East Anglia as well as actively seeking new ventures.'
Norrie Slater, divisional officer, Eastern division of union USDAW said 'We understand and support the Society's strategy to concentrate on its other successful businesses in East Anglia and that this deal provides for around 350 employees to be transferred to the new operator on their existing terms and conditions.'
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The new owner will honour East of England Co-op members' dividend cheques that have recently been issued. Customers of the Co-op's department and home stores business have also been assured that orders awaiting delivery will be fulfilled as usual and any deposits are safe.
The Society will continue to provide member service departments within selected larger department stores, and members will be able to access dividend transactions as normal. In place of the Co-op dividend card, Vergo Retail operates a customer loyalty card called the Vergo VIP Card, which will enable a reward to be earned on qualifying purchases.
The online electrical store launched last year by the East of England Co-op will continue to operate.
Richard Samson, chief executive of the East of England Co-op, said: 'We are pleased that this deal will secure the employment of our colleagues and maintain a strong retailing offer at the stores concerned. In the current economic climate maintaining job security is a key priority.
'It will also enable our customers and members to have the opportunity to continue shopping in these strategic locations, which will all remain in the Society's ownership.
'The decision to move away from non-food stores after so many years has not been an easy one to take, but the Co-operative Movement has generally moved away from operating Department Stores and no longer has the scale of purchasing power it once had in this area of business.
'The continuity of employment this deal provides for our colleagues in the stores concerned is very important and I know that they will continue to provide an excellent service to customers. I extend my sincere appreciation to them for their loyalty, support and hard work.'
Carr Street, Ipswich and adjoining Food Hall
St Stephen's Street, Norwich
Market Place, Great Yarmouth
Long Wyre Street, Colchester
Station Road, Clacton-on-Sea
Hamilton Road, Felixstowe
Tavern Street, Stowmarket
Oxford Road, Clacton
Peartree Road, Stanway
Newland Street, Witham
Main Road, Dovercourt
Eld Lane, Colchester
The two small Home Stores in Weaver's Court, Halstead and at Sizewell Road, Leiston, will be incorporated within the Society's existing large supermarkets located alongside.