Birmingham wholesaler George Perry has bought six out of 12 well-known grocery retail shops in the Midlands in a bid to save the chain’s typical spend in the market after owner Joe Richards passed away.
The move, which cost the firm around £300,000 after legalities and costs, is the first time George Perry has entered the retail sector.
Managing director Mark Tate (pictured) said the news of Richards’ death fell in a week of “three body blows” to Birmingham market – a fire also ripped through three units, and Asian retailer A1 Supermarket, which was a major customer of many Birmingham wholesalers, went bankrupt.
Richards passed away in July of this year and is thought to have owed significant amounts of money to wholesale traders, although Tate stressed the company had a good track record on payments, a very strong reputation and all its shops were “tradingmagnificently”.
Tate believed most traders to whom Joe Richards owed money would be covered by insurance. “Joe Richards’ death was a proper tragedy,” he said. “He was a great friend and respected by all on the market. He spent between £4-6 million on the market every year, and around £1m with us. In a week of three body blows to the market, we couldn’t let that spend go. We needed to protect ourselves and the market.”
The shops will continue to trade under the Joe Richards name - though registered as GP Retail - and the buyer will have free rein to use any firm, Tate said.
