Decision to delay Countrywide stores buyout can’t be reversed says local MP

LOCAL MP Michelle Donelan has said that the decision made by the government department to investigate the proposed buy-out of Melksham’s Countrywide store, which resulted in the chain going into administration, cannot be reversed. She says that instead, other ways to support the store should be explored.

Earlier this month it was announced that the sale of all Countrywide stores to Mole Valley Farmers would be delayed by up to six months whilst the Government’s Competition and Markets Authority (CMA) carried out an investigation.

The delay has caused Countrywide Farmers plc to go into administration, leaving over 20 jobs at the Melksham store at risk.

The MP said, “I was greatly saddened to hear of the troubles which Countrywide is going through as I know first-hand the hard work and dedication of all the staff on the Melksham store. Many of the workers at the store have contacted me at what is a very anxious time for both them and others in the community and I am visiting the store to meet with them all in person in the very near future.

“Earlier this month, I spoke at length to the Competition and Markets Authority (CMA) to clarify their position and the decision to conduct a six-month review of the Mole Valley proposed acquisition. The CMA confirmed that their processes are governed by statute and therefore it is not possible to conduct all required elements of a competition review in under six months, as to do so would breach its own charter.

“I appreciate that this six-month delay to the acquisition of Countrywide will mean the company effectively ceases to trade due to liquidity issues, but this is not the concern of the CMA nor in their remit, and so they cannot be blamed.

“I also questioned the CMA on the need to conduct a review in the first instance. They confirmed that as the merger would create a monopoly on farm and agricultural supplies in 45 geographic regions, this is far in excess of the basic triggers for a competition review. To not have conducted a review and placed the buyout on hold would have shown unfair advantage to Countrywide and again breached their own operating remit as set forth in legislation.

“Rather than challenge the legality and appropriateness of the review, I believe it best to explore other avenues of support for Countrywide to help the business trade as the competition review runs its course and I am speaking to various agencies on this matter.

“Whilst the closure of Countrywide would of course be of detriment to Melksham and the agricultural community, so too would a monopoly on agricultural supplies which could see prices soar, choice restricted and our hard-working farmers priced out of their jobs. It is for his reason that the review must go ahead as it would in any other industry, and we must seek alternative support.

“It would be a real shame to lose Countrywide from Melksham and for anyone who is affected by this issue, my office is always open and I can be contacted on 01249 704465 and please do not hesitate to get in touch.”

No date has been confirmed for the closure of the Melksham store.

Jo Chileshe, assistant manager of corporate communications for KPMG, on behalf of Countrywide Stores said, “All the stores continue to trade as the joint administrators progress their strategy to seek a buyer for all, or parts of the business.”