Surprise sale for £1bn retail group

Nisa Retail is headed for a shock sale following the appointment of bankers to get a deal off the ground.

The Scunthorpe-based, member-owned convenience store group has brought in bankers from Lazard according to Sky News.

They will look at bringing new shareholders into the business, potential restructures and how much could be expected from external capital.

Currently the business, which operates 3,500 stores across the UK, has around 1,400 members hold 250 shares each, though many hold far less.

Chief executive Nick Read has been spearheading a turnaround for the business which last year recording a £7.3m profit on sales of £1.3bn.

It is also in the process of finalising a £120m refinancing deal.

Along with rival Costcutter, Nisa Retail is also facing an unprecedented shift in the sector, growing competition from the Big Four supermarkets as well as discounters.

In major consolidation in the sector, Tesco proposed a £3.7bn takeover of Bookers, whilst Sainsbury’s was looking at an acquisition of Palmer‎ & Harvey after the latter struggled with its own refinancing.

Nisa have been contacted for comment.