Asda private equity owners grilled by MPs as supermarket braces for historic strikes

Asda’s private equity owners, TDR Capital, have been hauled in front of a parliamentary committee, as the supermarket braces for historic strike action. 

Gary Lindsay, managing director at the firm, told MPs that it took its relationship with colleagues “extremely seriously,” noting it was “absolutely not” against workers being in a union. 

The denial came as Labour MP Ian Lavery quizzed TDR about its choice to not meet with GMB Union after the group tried to organise a chance to meet with the business. 

Staff at Asda’s Gosport Superstore are set to strike next week over “toxic” workplace practices, wage errors and health and safety concerns.  

Nicola Nixon, regional organiser at GMB said: “To my knowledge, no Asda store has been balloted for strike action before, so this is historic for these members who have been brave enough to stand up and say ‘enough is enough’.

“The strike action is a cry for help from these hard-working colleagues, who help deliver Christmas for families all across the surrounding area.”

An Asda spokesperson told City A.M: “We have established processes in place for colleagues to raise any concerns where they may arise.

“We are pleased that the GMB have accepted our invitation to meet with Asda representatives and an ACAS mediator to further discuss their concerns about operations at our Gosport store, and that the initial planned dates for industrial action have been withdrawn whilst these discussions take place.“

It was a rare public appearance for senior figures of the private equity firm, which owns a host of other high street brands including Stonegate pub group. 

Top bosses at the multi-million pound firm were called in front of MPs to examine whether or not there was a “debt bomb” forming under the British high street because of the private equity business model. 

Lindsay said Asda was delivering real “economic value back to customers” and the supermarket had managed to reduce prices by nine per cent since its takeover. 

It is the second time big wigs behind the supermarket have been scrutinised by government officials, with joint owners Moshin and Zuber Issa last month called to answer questions about Asda’s mounting debt pile. 

At the time, the billionaire duo, which also owns EG Group, said nobody should be concerned about its debt despite confirming it has £4.2bn on its books.

“What I would say is that the debt leverage at the start of the year was at 4.2 times, that has gone down to 3.8 times and that trajectory is to go down even further by the end of this year,” Moshin told MPs.