Morrisons sells Channel Islands stores
CI Traders acquires former Safeway outlets

Morrisons is selling its stores on Jersey and Guernsey to Channel Islands retail and leisure group CI Traders.

The £51m deal will see Yorkie Holdings, a subsidiary of CIT, take over the stores, which were acquired by Morrisons as part of its takeover of Safeway last year.

Last month, CIT reported strong growth in its grocery operations over the year to the end of January. The group operates more than 40 food stores on the islands under various brands.

The Checkers brand operates three superstores, while a c-store operation trades as Checkers Xpress, and as Island Shopper on Guernsey. CIT has also successfully bought the Marks & Spencer Simply Food brand to Jersey as part of its franchise deal with M&S.

CIT intends to trade the two Safeway stores under their existing name, but will be developing a new logo which will be agreed with Morrisons. The 400 employees of both stores will transfer to CIT.

For Morrisons, the deal confirms a strategy of focusing on the UK. There are currently also two Safeway stores on the Isle of Man.

Morrisons has also announced that Rathbone Kear, a newly established company in which it has a majority share, has acquired some bakeries and related assets from the administrators of Rathbones Bakeries, for a total ofs £15.5m.

Morrisons partner in Rathbone Kear is Harry Kear, who owned Rathbones Bakeries Limited prior to its sale to Greencore in 1997. The supermarket said the acquisition "will secure continuity of supply for Morrisons and other retailers and continuity of employment for a substantial number of Rathbones Bakeries' employees."

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