Asda has started a consultation over 72 staff based at the EG Group headquarters in Blackburn.
It will affect staff working in the former EG ‘back-office’ functions such as HR, payroll and finance that Asda acquired when it bought 356 convenience sites from EG Group in October 2023.
As part of the acquisition, Asda entered into a Transition Service Agreement (TSA) with EG Group to separate and move all activities relating to these sites to Asda within a two-year period.
The company says it is on course to complete the separation before that date and it no longer needs to have a presence in their Blackburn headquarters.
Asda is looking to 'support affected colleagues' and 'redeploy as many as possible to suitable vacancies in Asda’s head office in Leeds.'
An Asda spokesperson said: “Asda’s acquisition of EG Group’s convenience business in 2023 included a transitional period of two years to separate and integrate all back-office functions into Asda.
"With this process nearing completion, we have begun a collective consultation to close the Asda office based at EG’s corporate headquarters in Blackburn.
"Our priority is to support colleagues throughout this process."
Zuber and Mohsin Issa bought Asda from Walmart in 2020 in a £6.8bn deal with the backing of TDR Capital.
In November last year, Lancashire Business View reported how Zuber Issa stepped down from his role on the board of Asda after completing the sale of his shares to TDR Capital.
It meant that TDR owned 67.5 per cent of the business, with Zuber's brother Mohsin holding 22.5 per cent. US Group Walmart owns 10 per cent.
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