The future of Nisa-Today’s merger with Costcutter remains uncertain, as Nisa’s holdings board meets to discuss the future of the company.
Included in the merger are plans to sell Nisa’s Scunthorpe warehouse and then lease it back to the company. The Nisa-Today’s Members Association (NMA) said that the sale of the warehouse for £40m and lease-back option, would incur rental costs of around £2.5m per year, on a 20-year lease.
In a letter to the shareholders, Mark Proudfoot, managing director of the NMA, urged the shareholders “to make the strongest representation to all directors of the Nisa–Today’s holdings board, making it clear to them they cannot sell this asset.
“If our holdings board were to be allowed to proceed with ratification of this sale, on Thursday [10 August 2006], this would add considerably to the other additional costs which we will all incur as a result of this proposed merger.”