A county councillor has said he will be seeking assurances on jobs after a deal was announced that will see Co-op petrol stations change hands to supermarket giant Asda.
The branch of the business has been sold off in a £600 sale that means the Co-op petrol stations and food stores in Prudhoe and Cramlington will move over to Asda, along with 129 sites across the country. The Co-op also has a petrol station in Gosforth Park in Newcastle.
Asda has said those working at the Co-op petrol stations will transfer across with the business - but one Northumberland county councillor has asked for assurances over his local branch's long-term security.
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Coun Gordon Stewart, who represents Prudhoe South, said: "We are facing challenging times and changes to the working and leisure practices of many people, and I understand the Co-op's decision.
"I am delighted that the garage and store facilities are to continue, with a new owner as it will bring with it options for local people. I will be seeking reassurance regarding the long term future of the facilities and employment."
Asda said that around 2,300 colleagues currently employed in the Co-op stores will transfer to Asda’s employment under TUPE transfer following completion and after a transition period. It is expected the deal will be completed in the final quarter of the year.
Mohsin Issa, co-owner of Asda, said: “We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK.
“We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.
“We look forward to welcoming the Co-op colleagues to this new part of our business after we complete the transaction and due processes in the coming months.”
For the Co-op, the deal represents five per cent of its entire retail estate. It said the sale of the "relatively small" business will be reinvested into other areas.
Shirine Khoury-Haq, chief executive at the Co-op said: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”
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