The Co-operative Group has moved to rebuff claims by convenience chain Haldanes that the group has forced it into seeking an administration order.
The Co-op said that it “regrets” that Haldanes has taken the decision to seek an administration order.
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“Should the business go into administration, we will look at any ways in which we might be able to help those communities and Haldanes’ employees who will be affected,” a company spokesperson said.
Earlier today, CEO Arthur Harris blamed the Co-op for its financial woes. Harris has attributed its problems to the Co-op’s unwillingness to renegotiate contracts on the 26 stores the Haldanes acquired in 2009.
Haldanes and the Co-op began legal proceedings against each other in early May, with Haldanes alleging “material breaches” by the Co-op. Harris also claimed that the Co-op had “breached” the undertakings it had given the Office of Fair Trading as part of its acquisition of the Somerfield chain.
The Co-op responded by saying that it had begun proceedings to recover possession of a number of the 26 stores over unpaid rent.
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By GlobalDataHowever, a spokesperson for the Co-op told just-food that Haldanes is “substantially indebted to the group due to its failure to pay rents owing to us” and that it has acted in “good faith” in its dealings with Haldanes, including providing “significant financial support during its start-up phase”.
“Most recently, we carefully considered a proposal from Haldanes that we provide further financial support to help them through their current difficulties. We regrettably decided, however, that given what appeared to be the levels of the issues facing Haldanes, we could not proceed,” said the spokesperson.
