It’s been a tough year for British food companies.
On Tuesday, it was announced that British food giants Albertsons, Lidl, Tesco and Sainsbury’s would all close by the end of 2019.
The announcement was made in a letter to shareholders.
“The company is currently experiencing a significant impact to its operations and our business as a result of the recent and complex financial and legal proceedings.
We have not been able to meet our obligations under the Companies Act.
Our business will no longer be viable.
Our business and our shareholders are very disappointed and we have not received any assurance that we will be able to find alternative financing arrangements to support our business,” said the letter.
The letter added that it was “essential” that Alberksons, Tescos and Socksons close within three months, in order to avoid a “disastrous outcome”.
Albertson’s CEO Simon Carter said: “We are very proud of our heritage of providing quality and affordable food and our customers trust us with their grocery needs.”
Lidl said it was closing up shop as well, and was moving to its “newly-formed and highly-secure” factory in India.
Tesco said that it would close its factory in the UK next year, with a new plant to be built in the Netherlands.
Lidlar said that its European headquarters would move to France, but that the company would remain in the United Kingdom.
Lids, which has more than 40,000 employees, said it had been struggling for years, with its suppliers struggling to get the right price for their products.
In a statement, it said: “We have been facing significant challenges in our supply chain as a consequence of the complex legal proceedings in the courts and our supply channels have become increasingly complex and costly.
As a result, our business has been in a negative position.
Despite this, we have been able in recent years to make significant progress in achieving our targets.
However, we recognise that these have not yet been fully realised and we will continue to seek additional resources to continue to drive innovation and growth.”
Sainsbury said that the closure of its factory was “a blow to our employees and suppliers, who have worked very hard to build this business”.
“We are a leading manufacturer of fresh foods and will be moving our manufacturing operations to the Netherlands,” it said.
Sainsburys said that “our business will be significantly disrupted” and that it has “no certainty” about when the new factory would be ready to be finished.
This is a developing story.
We will update as more information becomes available.