Thousands of Argos jobs threatened
Thousands of Argos jobs could be lost and up to 200 stores closed under a £1.4 billion takeover plan by Sainsbury's after it won a bidding war with a rival South African company.
The South African firm, Steinhoff, pulled out of the takeover battle shortly before a Stock Exchange deadline yesterday, clearing the way for Sainsbury's.
The supermarket chain outlined its takeover plans earlier this year that could see a third of Argos stores closed and replaced by concessions in the supermarket chains stores.
Thousands of jobs at Argos, which employs 33,000, could be lost in the move, which places all 16 of the company's shops in the Black Country and Staffordshire under threat.
After its bid was gatecrashed by Steinhoff, which owns UK furniture firm Harveys, both were given until 5pm yesterday to put up or shut up. Steinhoff pulled out and Sainsbury's made its formal offer with just 30 minutes to go.
Sainsbury's chairman David Tyler said the merger with Argos owner Home Retail Group "presents an opportunity to accelerate our strategy, delivering compelling revenue and cost synergies.
"We will create a multi-product, multi-channel proposition with fast delivery networks that we believe will be very attractive to the customers of both businesses."
As well as closing Argos stores and moving them into branches of Sainsbury's, the supermarket group says it will make more money from selling its clothing, homewares and seasonal and leisure ranges through the existing Argos network.
In a presentation outlining its plans earlier this year Sainsbury's said it would look to shut a number of the 734 stores in the Argos chain and bring them into its supermarkets as concessions.
Retail experts believe between 150 and 200 Argos stores could be affected.
The supermarket said it would create a "world-leading" retailer bigger than rivals John Lewis and Amazon UK when it tabled an improved offer for Argos in February.
Earlier this month Home Retail chief executive John Walden has branded recent weeks an "eventful period" for the company, which saw it sell off its DIY chain Homebase to Australian conglomerate Wesfarmers for £340 million in February.
Meanwhile Steinhoff, after abandoning its pursuit of Argos yesterday, instead launched £673m takeover of French electricals retailer Darty.
