Budgens to close 34 shops

Thirty-four Budgens supermarkets are to close after the chain collapsed into administration. The owner of the shops, Food Retailer Operations, called in PwC as administrator a month ago. PwC said it failed to find a buyer for the leases. The shops were part of a 74-strong portfolio of former Somerfield supermarkets bought from Co-op in July 2016. Co-op said the supermarkets were non-core assets. Nine of the 34 Budgens shops shut over the weekend. The remaining 25 will close permanently over the next three weeks. The shops are spread evenly around the UK, and range in size from 15,000 to 25,000 sq ft. They are understood to face strong local competition. The Budgens brand is owned by food wholesaler Booker, which Tesco is in the process of buying in a £3.7bn deal. PwC said: “Unfortunately we have been unable to find a buyer and it is not commercially viable to continue trading these stores.” Tom Edson, director, out of town retail, Colliers International, said: “The majority of these locations are not conventional convenience store locations, and Tesco and Sainsbury’s are now working with smaller convenience store formats that are working better. The [Budgens supermarkets] struggle from being in between the size of convenience stores and supermarkets. “The size has been done well by the discounters, but the locations in the towns are not the strongest. There may be residential opportunities at some of the sites, and sites such as Weymouth could lend themselves to a retailer such as Pets at Home, which can work well out of town.” Closed on 26 February: Aberystwyth Blackburn South Benfleet Ludlow Weoley Castle Norwich Dagenham (Becontree) Greenwich Sydenham Closed on 5 March: Northumberland Heath Watton Buckley – Brunswick Road Prestwick Crewkerne – Falklands Square Helston – The Parade Cardigan – Lower Mwldan Totnes – Fore Street Shaftesbury – Bell Street Christchurch – Saxon Square Rochford – Roche Close Basingstoke – Winklebury Way Tiverton – Market Walk Closing on 9 March: Gillingham, Kent Southall, London Littlehampton – Wick Street Sherwood – Mansfield Road Newport, Shropshire New Invention New Brighton Wisbech St Neots Paisley Monmouth – Oldway Centre Weymouth – Littlemoor Road Click here for full addresses and landlords >> • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette