57 jobs lost as Budgens stores close in Newport and Ludlow

Food Retailer Group, an arm of business restructuring specialists Hilco Capital, appointed PwC as administrator last month but the accountancy firm has failed to find a buyer for the group.

A total of 815 staff have begun the redundancy process, including 27 who had worked at the Ludlow branch, and 30 employed at Newport.

The store in High Street, Newport, is due to close on Thursday, while the shop in Ludlow's Upper Galdeford has already shut its doors.

Mike Denny, joint administrator at PwC, said: "Unfortunately, we have been unable to find a buyer and it is not commercially viable to continue trading the stores.

"We are working closely with the Co-op, Usdaw and the relevant government agencies to ensure that all employees receive the maximum levels of practical and financial support through the redundancy process."

Food Retailer Group bought the former Somerfield stores from the Co-operative Group in July.

At the time the firm said "there are no planned redundancies" and stores will continue "trading as usual".

It also holds leaseholds on another 36 stores which are not currently trading, two non-trading properties, and the head office of the former Somerfield supermarket chain.

The company's collapse does not affect other stores in the Budgens chain, including Shropshire's other outlet in Bridgnorth, as these are not operated by Food Retailer Operations.

The Usdaw union's national officer John Gorle said: "This is devastating news for the 800 staff affected.

"I am seeking an urgent meeting with the Co-op about possible redeployment opportunities and we will explore all avenues to help members seek alternative employment.

"In the meantime our team of Usdaw reps and officials are providing the support, advice and representation our members need."