Prices slashed in Woolies sale as Dragon pulls out of rescue bid

MILLIONAIRE entrepreneur Theo Paphitis has pulled out of a possible deal which could have saved the jobs of employees of the Minehead branch of Woolworths.
The troubled retailer went into administration last week with debts of £385 million and receivers Deloitte was immediately approached with several inquiries about purchasing the chain.
Mr Paphitis, a star of the BBC Dragon’s Den television programme, was said to be interested in bidding for some of the more profitable Woolies stores and maintaining the Woolworths brand.
However, the Dragon has now pulled out and said in a statement: “Unfortunately, the constituent parts of Woolworths are more valuable than the whole.
“The administrators have a difficult job to do and I appreciate they need to get the highest cash value for the business.
“I hope that an alternative proposal succeeds in securing the future for the many Woolworths employees involved.”
Mr Paphitis has previously revived troubled brands such as La Senza and the stationary chain Rymans.
His withdrawal leaves the future of 30,000 Woolworths jobs in doubt, although Deloitte said the stores would continue throughout the Christmas period and money had been ring fenced to pay salaries.
It is now expected that most of the stores will be sold in small groups to a number of different bidders.
The deadline for bids for single or small groups of stores was 4 pm on Wednesday.
Supermarket firms Tesco, Sainsbury’s, Asda, Waitrose, the Co-op, and discount chain Poundland were all said to be interested in some of Woolworths’ prime high street locations.
The largest shareholder in Woolworths, Ardeshir Naghshineh, was also reported to be preparing a bid for the company.
Woolworths will tomorrow start its ‘biggest ever’ sale in an effort to shift large volumes of stock, slashing prices by up to 50 per cent across its product range.
Deloitte partner Neville Kahn said: “We anticipate increased footfall in the stores and have hired additional staff to cope with increased demand.
“Additional goods have been moved to all stores and further stock will be added in the coming days.”
Woolworths Group, which has a 40 per cent stake in 2Entertain, a joint publishing venture with the BBC, is also likely to be placed into administration.

Vulcan Road - Morrisons beats Tesco and ASDA to supermarket deal

SUPERMARKET chain Morrisons is set to buy Minehead’s Vulcan Road car park site from West Somerset Council for nearly £8 million.
The council, which has suffered a financial crisis since the Independent group took control after last year’s elections, has chosen the firm as its preferred ‘anchor retailer’ for the site, which is close to the town’s Tesco supermarket.
Morrisons is likely to build a ‘medium’ size supermarket together with a petrol filling station, and will also provide 14 coach parking bays to support the area’s tourism transport needs.
The Bradford-based company has outmanoeuvred rivals Tesco, which was favourite to acquire the site, and also ASDA, which had been closely linked with it previously.
The council decision is seen as bowing to the influence of the Direct pressure group which supported many of the Independent candidates in last year’s elections.
Direct opposed allowing a supermarket into the town which would have competed with existing shops selling ‘white goods’ and electrical goods such as refrigerators and televisions.
Morrisons, which has 375 stores around the country serving 10 million customers a week, is a food specialist with only a limited range of other products such as music CDs, toys, and garden furniture, as well as its petrol stations.
The firm led the way with fuel price cuts which have seen the cost of a litre of petrol fall back by up to 12p in recent weeks.
District council leader Councillor Keith Ross said: “Last year’s consultation with local people and businesses prior to the meeting played an important part in reaching this decision.
“Residents wanted to see an alternative supermarket to improve their choice of where to shop, and businesses did not want to see A1 retail development on the site.
“While the bids submitted have broadened since the consultation and the economic situation has changed, we have listened to, and abided by, local people’s wishes.”
The Vulcan Road consultation undertaken at the end of last year showed more than 40 per cent of respondents wanted to see a supermarket on the site, with only slightly more than seven per cent favouring a larger Tesco.
The local business community, headed by electrical goods shopkeeper Graham Sizer, did not want to see A1 retail development on the site as they felt it would be detrimental to the town centre.
Councillor Ross said: “While Morrisons was not among the supermarkets that originally expressed an interest, it submitted a very competitive bid that matched the aspirations of the majority of local people.
“We are looking forward to working with our partners to bring positive changes for Minehead and the villages it serves.”
The option selected will provide a supermarket with a net sales area of 23,254 sq ft with an 18,000 sq ft limitation on convenience foods, and 261 customer car parking spaces.
The council will now enter a three-month exclusivity period with Morrisons during which further negotiations will take place, and anticipates that contracts will be signed in November.
Members of the council debated for 90 minutes last night before reaching their decision, which was approved with only one abstention.
The prospect of another petrol station in Minehead was generally welcomed as the town and neighbouring villages were rural and many people depended on their cars for transport.
There was broad agreement the petrol station would bring more competitive prices and that in the event of another strike or fuel shortage, the supply to residents would be more secure.
Morrisons proposes to build the supermarket so it is oriented toward the town centre to encourage inward trade to the town.
Councillors expressed a wish to see footpaths linking with the other elements on the industrial site and the town, so all businesses could have the opportunity to benefit through better access.

Finally, a final decision on Vulcan Road on the way

THE future development of Minehead’s Vulcan Road car park could finally be decided next week, after months of back peddling by district councillors unable to face letting down the people who elected them.
Councillors will consider their preferred option for the future development of the site at their meeting on Wednesday – even though the authority previously formally agreed a supermarket scheme and other retail use two years ago.
Another round of public consultation recently revealed there was significant local support for a medium-sized supermarket to provide competition for similar outlets in the town and support for affordable housing.
There was little support for a large Tesco supermarket, mixed retail/industrial development, or an hotel.
In light of this, the report being presented to councillors next week recommends:

• The site for development is restricted to Vulcan Road car park and the council’s Mart Road depot site
  
• The ‘preferred option’ for elements of the development consist of a medium-sized supermarket, plus A1 retail and affordable housing
  
• A future draft development agreement includes clauses that require:

1. any viable scheme put forward by the developer to include proposals for linking the development site with the town centre
   
2. any viable scheme to include proposals that minimise the environmental impact of both the design and subsequent operation of the finished development
   
3. the limitation of A1 retail following the non-inclusion of a hotel as part of the preferred option
   
4. any viable scheme put forward identifies the difference in the amount of capital receipt generated between units of rented affordable housing and shared equity affordable housing

Once members have decided their broad preferred option for the development of the site, work will begin on drafting a detailed development agreement which will go back to the council for consideration at a later date.

Vulcan Road - what you think about council plans

WEST Somerset Council has received a Statement of Community Engagement report from Consensus, the independent consultancy company appointed to consult with local people on the future of Minehead's Vulcan Road Car Park.
Consensus met with interested parties including the Minehead Chamber of Commerce, local pressure group DIRECT and students from West Somerset Community College.
There was also a three-day public display and consultation in The Avenue, one of Minehead's busiest thoroughfares, where local residents and groups such as Minehead Conservation Society had their chance to state their preferences on the car park's future.
The six options put forward included a range of uses and all included affordable housing, an hotel and parking for coaches, with the exception of Option 6. Nearly 400 people responded to the survey and the overall indications are:
OPTION 1. Mixed retail and industrial units 4.8%
OPTION 2. ASDA 15.6%
OPTION 3. Open A1 retail 8.8%
OPTION 4. Sainsbury 24.1%
OPTION 5. Tesco 7.3%
*OPTION 6. None of the above, but… 34.1%
Multiple Choice. (More than 1 option selected). 5.3%
*However, the report gives a health warning relating to the outcome of Option 6.
It states that people should note that the response to Option 6 is not a simple 'no' vote.
Instead, Option 6 aimed to provide respondents with the chance to reply to the question - if none of the above, what would they like to see on Vulcan Road?
The responses to Option 6 showed that some people wanted a 'hybrid' of one or more of the options, while others did not object to developing the site in principle but would like it to be used for a different purpose.
Very few respondents voted in favour of keeping Vulcan Road in its present form.
The aim of the report was to provide West Somerset Council with a qualitative insight into local people's concerns and aspirations for Vulcan Road.
The report also states that there is scope for a further 'hybrid' option, which may involve a combination of aspects of the current proposals and the exclusion of other aspects.
The council's acting head of paid services, Adrian Dyer, said: "The report is a useful insight into how the community would like to see the site developed.
"It also gives us a wider view of topics and issues that influence and impact on the community, and it may help us not only in this decision-making process, but may also help inform future choices in Minehead.
"The report has been sent to members and will be considered by cabinet on April 2.
"Full council will then debate any recommendations arising on April 16 at a venue to be confirmed."
The report is easily available on the 'popular pages' section on the front page of West Somerset Council's website at www.westsomersetonline.gov.uk.

Minehead 'a safe place to live'

FIVE weeks to the day after Minehead gardener Tim Chilcott was killed by a savage town centre street assault which shocked the community, security guard Mike McDermaid was attacked in the town’s busiest supermarket and suffered a fractured skull and eye socket.
A young teenager came up behind Mr McDermaid and struck him over the head with a full bottle of spirits which had been stolen from the store, knocking him to the ground.
The police officer leading the earlier inquiry into Mr Chilcott’s killing, Det Chief Insp Martyn Triggol, announced publicly afterwards that such attacks were rare and Minehead generally ‘remains a very safe place’.
Now, however, Mr McDermaid, who previously served 24 years as a Special Constable in Minehead, is lucky to be alive after a late-night assault which happened as he carried out his duties in Tesco, off Seaward Way.
Mr McDermaid, who lives in Watchet, was attempting to help a colleague restrain a second teenager in the foyer of the supermarket when the assault happened.
Both youths were said to be attending 24/7 @ Periton Mead specialist school, just outside Minehead, and one was known to most traders in the town who belong to the anti-crime Shopwatch scheme.
They had already been officially barred from entering the Tesco store because of previous incidents.
Mr McDermaid told The Post: “Knowing that they were barred, they were actually entering as ‘burglars’.
“I immediately alerted the police and the store management and locked the doors.
“It all then kicked off in the foyer. They shoulder-charged the doors to try to get the doors open, then they were kicking the windows trying to get out. They had a girl accomplice outside who was kicking the windows trying to get in.
“I was going towards the one that my mate was holding onto when the other one came up behind me and cracked me over the head.
“It put me in hospital for two days and fractured my skull from the forehead just above the hairline down to the right eyebrow, which gave me a black eye.
“I do not know why he did it. I was no threat to him because I was going away from him.”
Mr McDermaid has been off work since the assault, which happened at about 10.15 pm on February 25, and he is not likely to be able to return for another three weeks.
Despite nearly a quarter-of-a-century working on police duties in the town, it was the first physical assault he had suffered.
He said: “I deal with anything that comes through the doors from day to day, but not anything like this before.
“It is a regular occurrence to be threatened, and I was once told by somebody they were going to come back and I was going to be stabbed, but I have not had anything like this before.
“As a Special Constable I have been involved in fights, of course, restraining people, especially outside the nightclubs, but this is the first time it has turned to violence towards me.”
Mr McDermaid said the incident had not put him off his security duties and he was keen to return to work.
Police confirmed that two juveniles had been arrested, one on suspicion of theft and assault, and the second on suspicion of criminal damage.
Both were charged to appear before a youth court the following day. The law prevents newspapers from identifying the teenagers because of their young age.

• Our photographs show Mr McDermaid's injuries two days after the attack. Photos submitted.

It's official - Tesco wants Aquasplash

SUPERMARKET giant Tesco has confirmed it is interested in buying the now-closed Aquasplash leisure pool in Minehead as part of a larger deal involving the town’s Vulcan Road car park site.
Following a story leaked a fortnight ago from inside cash crisis West Somerset Council, Tesco corporate affairs manager Tony Fletcher gave The Post a ‘categorical denial’ that the company had purchased the sites.
But Mr Fletcher confirmed the company had submitted proposals as part of the current consultation exercise over the future use of the Vulcan Road site.
Mr Fletcher said: “The company is awaiting feedback from the council’s consultation exercise and believes that its proposals for a larger foodstore, along with a much-needed hotel, coach parking, and further residential units, are essential to meet the future needs of both local residents and visitors to the town.
“A larger foodstore - comparable to that in Tiverton - will offer shoppers a wider range and more choice, especially of local produce and specialist foods such as organic products.
“It will also draw shoppers to Minehead from outlying areas, thus preventing them having to drive further afield to other destinations, whereas a second foodstore of comparable size to the existing one will not be able to offer such a wide variety.
“A new, larger Tesco would also act as a magnet to new shoppers and, importantly, to other new retailers as a result of the redevelopment of the existing store site for retail use.”
Mr Fletcher said Tesco looked forward to being part of the Minehead community for many years to come, irrespective of whether or not it was chosen for the Vulcan Road site.
He said: “Tesco’s existing store in Seaward Way has served Minehead for more than seven years, employing nearly 180 local people, and has played an integral part in the local community.
“During this time, the store has proved extremely popular to both local residents and visitors to the town.
“As part of our on-going process, the company is always reviewing its product range and store performance.
“The store is already handling more customers than it was designed for and thus is operating under severe constraints.
“This is confirmed in the initial feedback from a survey currently being undertaken among our customers which also suggests customers would like to see more locally-sourced and organic produce, a range of clothing, and a café.
“The full results of the Tesco survey will be published shortly.”
Council PR and media officer Stacey Beaumont said: “The council, like the public, has learned of this apparent interest through the media and has not had any contact regarding this matter from Tesco.
“In any case, we would like to point out that Aquasplash is not on the market and, with regards to Vulcan Road, no decision has been made or will be made until councillors have received and considered the consultation results.”

Rising petrol prices - yes, you can protest

MOTORISTS in West Somerset are being urged to join a nationwide fuel protest designed to drive down the price of a litre of petrol.
An email has been circulating which argues that all drivers need to do is boycott the largest petrol company stations - Esso and BP - for the rest of the year.
The author urges people instead to buy their petrol from Tesco, Sainsburys, Shell, Jet, and other companies.
The thinking behind it is that a one-day boycott as happened last spring has little effect, and only a few people could manage without fuel at all for any length of time, therefore the petrol companies just have to wait it out.
However, by boycotting the largest two companies, these would eventually have to lower their prices - and the others would then follow suit.
The emailer asks for everybody who receives the message to forward it to at least 10 other people, so the idea will quickly spread among millions of people, and ‘together we can make a difference’.
His aim is to hold out until people see prices drop back below 70p per litre.

It has to be Tesco - Vulcan Road and Aquasplash set to be sold

THE fate of the Vulcan Road car park site in Minehead looks set to be decided by West Somerset Council’s urgent need to resolve its dire financial crisis.
And The Post can reveal that the council appears ready to sell not just its Vulcan Road land but also its adjoining Aquasplash site, in a single giant deal worth up to £11 million.
The buyer is said to be Britain’s largest supermarket firm, Tesco.
Despite a supposedly ongoing public consultation by the council on the future of the land, the Independent-led council looks to have reached a deal behind closed doors.
The move would be a massive slap in the face to the public who voted out the last Conservative administration after a prolonged campaign by pressure group Direct against the council doing such a deal with Tesco’s main rival ASDA.
The ruling Independent group of councillors finally abandoned the previous scheme last November and ordered a new round of consultation with the public before making up their minds on what to do.
But five weeks after the consultation was carried out, councillors have not been given any results.
Council Media and PR officer Stacey Beaumont could not give any timescale for producing a report on the consultation findings.
She said it would happen ‘in due course’.
However, she denied that any decision ‘has been taken or will be taken’ before councillors considered the report.
The move would help to explain why the council’s cabinet has been so reluctant to try to repair and re-open the Aquasplash leisure pool, and why staff in Tesco’s Minehead store have been told the firm is buying it.
While councillors are thought to have started the recent consultation from a position of genuinely wanting to find out what the public had to say, their wishes look to have been overtaken by events.
The Post understands that council leader Councillor Keith Ross is under increasing pressure to bridge a £1 million funding gap after budget overspending by his administration in the past nine months.
In a bid to keep a lid on the escalating crisis, some councillors are even said to have been barred from receiving financial figures.
Nobody was available from Tesco’s press office to comment as The Post went to press.

Trolley good fund-raising effort by scouts and girl guides

SCOUTS and Girl Guides in West Somerset worked together over the Christmas period to raise funds towards the refurbishment of their headquarters in Alcombe.
Members of the 1st Exmoor Scout Group and 1st Alcombe Guides took part in a trolley push at the Tesco supermarket in Minehead.
The youngsters accepted donations for helping customers back to their cars with their shopping and then returning the trolleys to the store's trolley park.
A total of £774.95 was raised for the ongoing refurbishment work at the Alcombe hut, which is shared by the Scouts and Guides.
Assistant Scout Leader and treasurer of The Hut Fund Committee, Andrew Coward, said: "We would like to thank everyone for their generous donations and all the staff at Tesco for their help."
Photo submitted.

More public consultation on new supermarket for Minehead

A NEW public consultation exercise is to be carried out to again test residents’ views on the future use of Minehead’s Vulcan Road car park (pictured).
The move comes as Independent councillors on West Somerset Council look for justification for backing out of an agreement for a supermarket and other units to be built on the site.
The Independents were elected on the back of a Direct-orchestrated campaign to stop shoppers in West Somerset being given greater choice of supermarket shopping.
Now, despite previous consultation showing people wanted Vulcan Road to include a supermarket - preferably ASDA - councillors have demanded development partner Chelverton Developments Ltd should further research the public’s views on six possible options for the site.
The consultation will be carried out by independent specialists, Consensus, which is owned by former Minehead student Mark Crosby.
Mr Crosby said: “Our task is to provide local stakeholders groups and the wider community with an opportunity to examine each proposal and then record their views.
“The feedback from the consultation will then be collated in a statement of community involvement and submitted to the council for their scrutiny and deliberation.
“It will be for them to determine which option, if any, best meets the future needs of the community.”
The exhibition will be open to the public at the former Ceci fashion shop in The Parade, Minehead, from 10 am to 5 pm on Saturday, December 1, and from 10 am to 1 pm the following day, Sunday, December 2, and again from 10 am to 5 pm on Friday, December 7, to coincide with the farmers’ market in the town centre.
Four of the options involve Tesco, Aldi, Sainsbury’s, or ASDA, each of which also includes an hotel.
A fifth option is for a smaller scheme of mixed retail and employment units.
All of the options contain some affordable housing.
There is also a ‘none of the above’ option.
All options will be displayed with a plan showing how the development would be laid out, together with an indication of the amount of money that each proposal would generate for the council.
Mr Crosby said: “I believe people want to be provided with accurate and straight-forward information about each option in order that they are able to make a properly informed decision.”
Consensus is also meeting with representatives of Direct, Minehead Chamber of Commerce – which is run by ex-Direct chairman Graham Sizer, Minehead Town Council, West Somerset Railway, and the West Somerset Community College.