Asda’s private equity owners have insisted the supermarket can cope with spiralling borrowing costs on its £4billion debt pile.
TDR Capital, which bought the grocer with the Issa brothers for £6.8billion in 2021, told MPs it was ‘more than comfortable’ with the amount owed.
The Issas – Mohsin and Zuber – last year told the same parliamentary committee that the group faces a £30million rise in debt costs from next month.
Speaking at yesterday’s hearing, business and trade committee chairman Liam Byrne warned the supermarket chain was on a ‘debt treadmill’ having seen interest rates jump from 0.1 per cent to 5.25 per cent since the deal was agreed.
But TDR Capital managing partner Gary Lindsay said the debt levels were manageable at current rates.
He said TDR is focused on growing Asda after it stagnated under Walmart’s ownership, and it is trying to claw back market share.
But figures yesterday showed sales at Asda and Morrisons, which is also private equity owned, lagged rivals Tesco and Sainsbury’s over Christmas.
Related Articles
HOW THIS IS MONEY CAN HELP
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.