Costcutter Supermarkets Group today announced that it has signed a £35m refinancing deal with Barclays. The three year agreement is intended to support both business growth.
The group is in a transition period following the announcement in March that Costcutter had formed a strategic partnership with Palmer and Harvey to form the £5bn buying group The Buyco as part of an eight-year wholesale distribution contract. The joint-venture deal also saw P&H’s 800 Mace, Your Store and Supershops outlets stores merge into Costcutter.
However, the merger is still subject to Office of Fair Trading (OFT) scrutiny with a final decision expected at the end of this month. Both parties have previously told Wholesale News that they’re confident the merger would be given the all-clear if referred to the Competition Commission by the OFT.
Bob Marshall, financial director of Costcutter Supermarkets Group, said, “Having the support of Barclays for the next three years as the business manages the current period of transition and embarks upon its growth strategy is very positive. In Barclays, we believe we have the ideal partner for supporting the business investments we need to make.”
Ben Andrews, key client director at Barclays, added, “Costcutter Supermarkets Group has proven resilient through the cycle and Barclays support has been very much based on our belief in the quality of the management team and the consistent performance of the business. As a north east headquartered business with a national footprint, Costcutter Supermarkets Group is a key name in our region and we look forward to developing the relationship further and supporting the company’s growth in the years ahead.”