200 jobs saved as Pedigree Wholesale buys Just for Pets out of administration
Nearly 200 jobs have been saved at the crisis-hit Just for Pets chain after it was bought by a Midlands company.
Pedigree Wholesale is keeping Just for Pets' headquarters and 18 of its 25 stores, including branches at Wolverhampton, Stourbridge, Kidderminster and Telford.
But seven, including one at Wellington, will close.
Just for Pets' owner, the Shrewsbury-based agricultural group Wynnstay, revealed last month it was putting the loss-making business into administration following a 'marked deterioration' in its performance.
It had struggled against greater competition and cost pressures, as well as changes in consumers' spending habits.
The chain, based at Hartlebury near Kidderminster, was formally placed into administration on Tuesday, with Dow Schofield Watts Business Recovery, and immediately bought by Pedigree Wholsale, a Nottingham-based company that supplies pet and aquatic products to the UK independent retail sector.
Pedigree managing director Steve Brown said: "On hearing that the future of Just for Pets was under threat Pedigree Wholesale felt we could play a role in using our pet business expertise to secure a new future for the business.
"We know Just for Pets has a great reputation for offering outstanding customer service and has developed a loyal customer base so we are excited that Pedigree Wholesale can now create a future for the business and the brand.”
He said Pedigree had created a new company, PSR Trading, to run Just for Pets.
"We are confident that the addition of Just for Pets to the Pedigree Wholesale business creates the opportunity to development of our product range and through even greater economy of scale and buying power we can achieve cost savings which we believe will also benefit all wholesale customers.”
John Carpenter, joint administrator at Dow Schofield Watts , said: “We are delighted to have secured the future of this long established retail business and wish the PSR Trading team every success for the future. The Just For Pets business is strongly focussed on customer service and animal welfare and its directors and management have worked alongside us to ensure continuity of the business and a positive outcome for the majority of its employees and other stakeholders.”
Kate Byrne, the operations director of Just For Pets, thanked the entire workforce of the company for continuing to work with dedication and integrity through very difficult circumstances, since speculation began in mid-September. She added “The Just For Pets management team are also grateful to Ben, John and the DSW team for concluding the transaction under considerable pressure in terms of timescale and threats from various fronts. The sale to PSR represents the best outcome for employees, creditors and our very loyal and valued customer base.”
Former parent group Wynnstay said that in the six months to the end of April Just for Pets generated £7million of revenue but an operating loss of £250,000.
But at its half-year results in June, Wynnstay took a £3.9 million hit on writing down part of the value of the ailing pet supplies chain.
That meant that pre-tax profits at the group fell from £4.08 million to just £130,000, despite group sales increasing by 6.3 per cent to £205.3 million in the six-month period.
