Fears Musgrave may put franchises out of business
Convenience store chain Londis, owned by retail group Musgrave, has said its franchises must increase their minimum stock orders by half, which could force local retailers out of business.
Musgrave is believed to have told more than 2,000 franchisees that from February 26 they will have to spend a minimum of£3,000 a week on Londis goods, an increase of£1,000, it has been reported.
Londis shopkeepers, who own their stores and can buy from a range of suppliers, are concerned that this move is untenable and will force them to close.
Matt Hardman, spokesman for Forum of Private Business - an organisation that represents small businesses - said this kind of action was becoming 'all too common'.
He added: 'It is a case of passing on the inadequacy of the main business. This will be extremely difficult for managers and owners of franchises to deliver.'
No comments yet