Company Shop set for Middleton launch after £7.6m funding deal
COMPANY Shop, the surplus food redistributor that stops good food going to waste, is set to expand its property portfolio following a £7.6m funding deal with Lloyds Bank Commercial Banking
The bank’s Mid Markets team has provided the funding package worth to support the business’s ambitious plan to open five new stores by 2017, the first of which will open its doors in Middleton, Greater Manchester.
The new store to open soon will feature 8,000sq ft of retail space and create 50 new jobs.
Company Shop is open to people working in the food manufacturing sector and emergency services, at discounts of up to 70% via its 33 stores, which are run on a members-only basis.
It has been trading for more than 37 years and works with major food retailers and manufacturers such as Heinz, Kraft, Tesco and Marks & Spencer to take their surplus products and sell them on to members.
The renewed funding arrangement with Lloyds Bank follows a period of unprecedented success for the business, with 20% growth seen in 2012 and 39%growth in 2013, following the opening of its store in Grimsby and extension of its main distribution centre in Tankersley.
Hailed by the London Stock Exchange as one of the ‘1,000 Companies to Inspire Britain’ in March, the business estimates it prevents more than 30,000 tonnes of food going to waste annually and its most recent financial reports put turnover at £31.1m.
It also scooped a prestigious Queen’s Award for Enterprise in April this year.
John Marren, chairman and founder of Company Shop, said: “Surplus stock is inevitable in the food supply chain, and research suggests there is between 500,000 and 700,000 tonnes of in-date, wholesome food at risk of going to waste every year in the UK.
“Our business model means that we can tackle this, help food manufacturers and retailers reduce the costs associated with sending waste for anaerobic digestion or landfill, and bring fantastic value to our members.
“We are looking forward to bringing the benefits of food redistribution to Middleton and even further afield in the future.”
Andrew Kerley, relationship director at Lloyds Bank Commercial Banking, said: “Having worked with Company Shop Ltd for a number of years, it is clear that the team has the experience and passion required to achieve its clearly defined strategy for growth.
“We are committed to supporting regional businesses on their path to success, and our provision of funding for a new premises in the North West and to underpin future growth is testament to our confidence in Company Shop’s business model.”
