Morrisons has reported a £1.5 billion loss a year after being purchased by US private equity firm CD&R.
The grocer was acquired by CD&R in October 2021 for £7 billion, in a debt-fueled deal led by former Tesco CEO Sir Terry Leahy.
The supermarket giant’s balance sheet was left with £6.1 billion of debt as a result of the transaction, resulting in high-interest payments and high exposure to rising borrowing rates.
Read More: Morrisons will drop property maintenance suppliers putting 1,000 jobs at risk
The current loss of £1.5 billion, as reported by Companies House, includes a £400 million cost incurred as interest payments.
Morrisons was the UK’s fourth-largest supermarket the year before it was taken over, with a £201 million annual profit.
Aldi surpassed it last year, knocking it out of the Big 4 grocery stores.
Last week, the Bradford-based grocer announced plans to eliminate at least 83 property maintenance suppliers, threatening over 1,000 jobs.
Read More: Morrisons to axe 160 McColl’s head office roles
As it transitions away from suppliers, the grocer plans to use a single repair provider.
Morrisons is also planning to lay off up to 50 property maintenance workers at its Bradford headquarters and elsewhere in the UK.
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Source: Retail Gazette
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