J Sainsbury, the grocery store large, has joined a queue of bargain-hunting buyers inspecting a last-ditch rescue of the Planet Organic model.
Sky News has learnt Sainsbury’s has pitched a proposal for Planet Organic’s identify and mental property belongings in a deal that may most likely be carried out via an insolvency course of.
Retail trade sources mentioned the grocery store’s curiosity was “speculative” and downplayed the probabilities of a deal going down.
It comes after rivals, together with Waitrose, have additionally held talks with Planet Organic’s advisers at Interpath Advisory a few deal.
Last week, Sky News revealed the well being meals chain Holland & Barrett was additionally weighing an eleventh-hour bid for the natural meals and private care chain.
Insiders tipped H&B, which is owned by the Russian-linked funding group LetterOne, because the likelier purchaser of components of Planet Organic.
Redbus Ventures, an funding automobile arrange by one of many founders of Lovefilm, has additionally lodged a proposal.
Planet Organic trades from simply over a dozen shops and employs roughly 360 folks.
A decision of the corporate’s future is anticipated this week, following the extension of a discover of intention to nominate directors.
Any deal is more likely to contain a considerable variety of redundancies.
Planet Organic chief government George Dymond informed workers final month it had “not got back to the levels of sales that we were seeing before the pandemic”.
He added: “So, while we have taken every possible action to improve our position, including additional investment from our existing shareholders, we have so far been unsuccessful in raising sufficient funds needed to support the business and the growth plan.
“I need you all to know the way very sorry I’m that we’re on this place – I’m aware that this shall be a really unsure time for you all.”
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Planet Organic, which was based in 1995 by Renee Elliot, has been working with Interpath on a evaluate of its strategic choices since early this yr.
The chain sells natural food and drinks, in addition to healthcare and physique care merchandise.
Like many retailers, its latest efficiency has been hampered by the pandemic and lowered metropolis centre footfall.
It is known to have been loss-making in every of its final two monetary years.
Sainsbury’s and Interpath declined to remark.
Content Source: information.sky.com