LESS than seven months after its relaunch, Monmouth Oldway Centre’s Budgens store is at risk from closure with 20 jobs potentially under threat.

The former Co-operative supermarket is one of twelve stores that could be shut as part of a voluntary agreement by its owner, the Food Retailer Group Limited.

The Co-operative Group purchased the rival Somerfield stores in 2008 and hoped to strengthen its position in the UK grocery market, but in May this year the store was deemed nonessential to Co-op’s ‘core strategy’ and transferred to Hilco, a company that specialises in restructuring and refinancing other companies. 36 Co-operative stores were subsequently converted to the Budgens brand.

Now, the Food Retailer Group Limited is looking to restructure, and insolvency practitioners are instigating a company voluntary arrangement (CVA) for 74 supermarkets just six months after taking them on from Co-operative Group.

The decision leaves workers at the supermarket, some of whom have worked in the building since the store was a Somerfield, with doubts over their futures. A vote on whether the CVA will proceed will be taken on Friday 27th January.

A spokesman for The Food Retailer Operations Limited said: “Due to disappointing trading results, the board of The Food Retailer Operations Limited has launched a Company Voluntary Arrangement. The principal objective of the proposal is to rationalise the company’s leasehold obligations, restore the viability of the company’s business, improve the balance sheet and return to profitability.

“Subject to consultation with staff and landlord negotiations, it is anticipated that up to 12 stores could close in due course.

“All remaining stores will continue to trade as normal and where possible, staff will be redeployed in order to limit redundancies.”

The Budgens stores at Overmonnow Garage in Monmouth and the Chepstow store are not affected.