UMVA has learned that a leading grocery retailer based in Bradford is aggressively pitching its manufacturing arm to major supermarket chains, including a potential deal with Sainsbury's.
The move is part of a desperate bid to reduce a staggering £3.1bn debt burden, inherited from a 2021 private equity takeover. Industry insiders say the company is under immense pressure to alleviate its financial woes.
According to information obtained by UMVA, the Bradford-based grocer's Myton manufacturing arm has become a key asset in its efforts to deleverage. The company is reportedly seeking a lucrative deal that would help it grind down its massive debt pile.
Sainsbury's and other major supermarket rivals are said to be considering the pitch, as the grocer's manufacturing arm offers a tantalizing prospect of increased efficiency and cost savings. The stakes are high, with the outcome potentially determining the future trajectory of the company.
UMVA can exclusively reveal that the debt pile has been a major concern for the company's private equity backers, who are keen to see a swift reduction in leverage. A successful deal would be a significant step towards achieving that goal.
