A merger in Scotland is set to see the creation of a much larger retail operation in the country. The merger will also spread into north-western England, with a number of current stores affected too.
The two companies involved are Scotmid and Penrith, both of which confirmed the move at the end of June. The creation of the new group will see a greater number of stores opened across Scotland.
Scotmid, the bigger of the two companies, has more than 5,000 staff in total, who work out of 350 outlets in both the retail and service sectors.
In contrast, Penrith employs fewer than 200 staff, with nine Post Offices and other stores. These are spread across the English counties of Cumbria and County Durham.
In 2013, Scotmid posted a turnover of £428 million. Penrith’s turnover for the year was £13 million.
The news of the merger is nothing new, with many firms using invoice factoring facilities to fund their own operations. Some companies are also using such facilities to fend off takeovers.
It is also nothing new for Scotmid. Just last year The Fragrance House and Semichem owners took control of the Botterills chain of stores.
Whilst it is not expected that there will be any hitches with the new deal, it is still subject to approval. As cooperatives, members always get the final say on such matters.
The 275,000 contingent are set to go to the polls in a matter of weeks.