A major supermarket chain is at risk of closing 34 stores after “struggling financially”. Shoppers were devastated to hear a significant number of Co-op branches in Essex are at risk of closing.
There are also nine Co-op funeral homes that could be forced to pull the shutters down for good, unless members approve a proposed merger between Chelmsford Star Co-operative and Central Co-op. The society, which also runs travel agencies and department stores in the region, says rising costs such as National Insurance and the living wage have worsened its financial struggles in an increasingly challenging market. Chelmsford Star Co-op admitted it was “struggling financially” and could be forced to close if the merger does not go ahead.
They claimed their issues have been “exacerbated” by increases in National Insurance contributions and the living wage.
Locations at risk would include stores in Braintree, Chelmsford, Basildon, Thurrock and Southend among other locations, as well as two travel agencies.
It also runs Quadrant department stores in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford.
Chelmsford Star Co-op has confirmed that, as part of its proposed merger with Central Co-op, there are currently no definitive plans to close any of its food stores, funeral homes, or travel agencies.
Two meetings for members to approve the transfer will take place on July 16 and August 5, the proposal must pass at both meetings to proceed.
However, the society told EssexLive that if the merger is not approved, it may be forced to close entirely, placing all of its operations, including retail, funeral, and travel services, in jeopardy.
If the deal does go ahead it would see a transfer of Chelmsford Star Co-op into the larger Central Co-op, which would create a society with an estimated £1billion turnover.
An anonymous Chelmsford Star Co-op member expressed concerns about the merger, warning that “non-profitable stores will be closed quite quickly once the transfer has occurred”.
A spokesperson from Chelmsford Star Co-op, said: “As with any business integration, there will be a period of transition where the combined Society will review how best to organise itself to meet the needs of its members and communities.
“While no decisions have been made at this early stage, we can confirm there are no planned closures of Chelmsford Star food stores, funeral homes or travel agencies as part of the proposed transfer.
“Some support functions may evolve over time to ensure the organisation is fit for purpose and sustainable long-term, but this would be done with care, transparency and engagement with colleagues, members and unions. Importantly, the focus of both Societies is to safeguard as many roles and services as possible.”