Seema Malhotra – 2021 Comments on Asset Stripping by Supermarkets

The comments made by Seema Malhotra, the Shadow Minister for Business and Consumers, on 22 June 2021.

Responsible business owners invest in their companies for the long-term, because they know it is the best way to create wealth, support jobs and achieve long-term success and profitability.

But there are really worrying examples of companies including private equity firms loading businesses with debt, stripping them for parts and leaving with the rewards. It is far too often the employees, pensioners and the taxpayer who are left to pick up the pieces and pay.

The Government cannot just stand by and let that happen to Britain’s supermarkets, which are at the heart of our communities and provide an essential national service as we have seen during the pandemic. Ministers must stand up for the hundreds of thousands of workers, loyal customers, our farmers and the wider food retail sector who would be affected by a takeover – and secure the legal commitments we need.