Argos stores in West Midlands under threat as Sainsbury's seals takeover
The future of many Argos stores across the Black Country and Staffordshire is now in doubt after its parent company agreed to a £1.4 billion takeover offer from Sainsbury's.
The deal could see around 200 Argos stores closed and replaced by concessions in nearby large branches of Sainsbury's under visions for a 'multi-product, multi-channel' business.
No figures have been released, but the moves potentially threaten thousands of jobs among Argos's 31,000-strong workforce after parent company Home Retail Group agreed the deal.
There would be around 2,000 'points of Argos presence' around the UK, including the remaining 650 Argos stores, new concessions in some Sainsbury's and new click and collect points at other branches of the supermarket chain.
Argos currently has numerous stores around the Black Country and Staffordshire, including:
Three stores in Wolverhampton in the city centre, Bilston and Bentley Bridge Retail Park
One store in Walsall at Crown Wharf Shopping Park
Two stores in Cannock at Orbital Retail Park and Cannock Shopping Centre
Two stores in Dudley on the High Street and at the Merry Hill Centre
Three stores in West Bromwich at Bearwood shopping centre, Oldbury Retail Park and Kings Square
One store in Halesowen at the Cornbow Centre,
One store in Rugeley at Pointland Park,
Two stores in Stafford at the Hough Retail Park and on Mount Street
On store e in Lichfields Three Spires shopping centre.
The takeover, following a four month battle, will see Sainsbury's pay 0.321 new shares and 55p per share in cash to buy Argos, and will see Home Retail Group shareholders hold 12% of the combined business.
Sainsbury's said the deal should be completed in the third quarter of this year.
Chairman David Tyler said: "We are very pleased the board of Home Retail Group has recommended our offer for the acquisition of its business to its shareholders.
"The combined business will offer a multi-product, multi-channel proposition, with fast delivery networks, which we believe will be very attractive to customers and which will create value to both sets of shareholders."
Home Retail Group chairman John Coombe added: "Argos is both an icon of the British high street and also a leader in the digital transformation of UK retailing.
"We are pleased that Sainsbury's has recognised our progress and our potential with its recommended acquisition of Home Retail Group."
