Tuffins stores to be sold again

04/11/2012 @ 10:50

The company that took over the successful Harry Tuffins stores headquartered in Montgomeryshire are likely to sell off four of the 10 stores they took over earlier this year.

The deal by Midcounties Co-operative to take over the family-owned Harry Tuffins retail business was investigated by the Office of Fair Trading which was concerned the deal could increase prices and reduce choice.

It has emerged that Midcounties Co-operative is now looking to sell off four of the stores it took over in Powys, Shropshire, Gloucestershire and Flintshire. It has not said which stores would be sold.

The sale went through on the 30th April this year when the OFT investigation began. Over 450 jobs were secured in the sale which meant Midcounties had 470 stores in total, employing over 8,500 staff.

In statement, a spokesman for the OFT said: "The OFT has announced that it is considering whether to accept remedies offered by Midcounties Co-operative Limited to address the competition concerns arising from its completed acquisition of Tuffin Investments Limited, the grocery and fuel retailing business of Harry Tuffin Limited.

"The OFT's investigation found that the merger would create competition concerns in the retailing of groceries in four local areas.To resolve the competition concerns identified by the OFT in all four areas, Midcounties has offered to sell four grocery stores, two of which include petrol stations."

The OFT was concerned that new convenience stores would struggle to enter the market because of the number of stores owned by a single company in the area.

The statement added: "The OFT considers that the retail supply of groceries is an important service to a local area, and this was evident from the number of third party comments received on this merger.

"The OFT is concerned that customers in the local areas identified would face an increase in prices and a reduction in choice, and we are therefore considering the divestments offered by Midcounties to resolve these issues."