Bibby holding Costcutter takeover talks

Spokesmen for Bibby and Costcutter confirmed that discussions were ongoing, but declined to comment further. In September 2007, it was announced that Costcutter had sold a majority stake in the business to family-owned Bibby Line. The Liverpool-based company acquired a 51 per cent shareholding in York-based Costcutter Supermarkets in a deal which saw founder and executive chairman Colin Graves and his team of directors continue to operate the company.

Bibby Line, which was founded 200 years ago as a shipping business and now has interests ranging from oil field services to financial services and logistics and assets of £400m, acquired the 20 per cent stake in Costcutter held by Icelandic bank Kaupthing as well as 31 per cent from Mr Graves and his fellow directors.

After the completion of the deal, Mr Graves held the majority of the 49 per cent of the shares retained by Costcutter directors.

In June, it was revealed that Costcutter was aiming for further growth after increasing sales to £640m during a year of change.

The York-based retailer, which was founded 25 years ago, said sales at its 1,550 stores rose four per cent for the 12 months to April.