GMB accuses Asda owners of asset stripping after reports emerge of plans to sell logistics business

The brothers and private equity firm TDR Capital have reportedly lined up advisers Eastdil Secured to sell off Asda’s logistics network, which includes a distribution centre in Wakefield.

The GMB said the Issa Brothers "need to stop and think about the proud history and heritage of the profit-making supermarket".

GMB, the union for Asda workers, said the company’s sale and leaseback plans amount to "nothing more than asset stripping".

The Issa brothers have reportedly drafted in the advisers to prepare for the sale of up to 25 distribution centres, including Wakefield, Heston, Dartford, Bristol, Washington, Didcot and Lutterworth.

The company's logistics portfolio, which includes around seven million square feet of assets, could net more than £1bn.

Roger Jenkins, GMB's national officer, said: “This plan is nothing more than asset stripping. Private equity sharks are shaping up to extract as much profit out of the business as they can up front - before they’ve even got their feet under the table.

“Telling our members this plan ‘will have no implications on colleagues’ is a fantasy designed to try and alleviate the deep anxiety this announcement is bound to cause.

“The Issa brothers need to stop and think about the proud history and heritage of the profit-making supermarket they are seeking to acquire.”

The Issa brothers and TDR Capital's £6.8bn takeover of Asda is being currently investigated by the competition watchdog, but it is expected to get the go-ahead.

No decision on the sale of the logistics business will be made until the transaction is completed.