German organic retailer Basic has suspended the sale of the company to discount retailer LIDL.
Basic has put a halt to the sale after protests from its suppliers following the acquisition of shares in the company by Lidl parent, Schwarz Group, in February.
Basic chairman Josef Spanrunft said: “Some of our customers are anxious over the current developments. We must take that very seriously. Thus we decided to insert a veto against the sale.”
Schwarz Group’s stake in Basic stands at some 23%. The company bought into Basic to accelerate the retailer’s expansion throughout Germany.
Basic runs 25 outlets in the country, generating annual turnover of EUR73m (US$100m).