A group of 20 retailers have reportedly penned a letter calling for Nisa‘s Nick Read to resign, as they express anxiety over the proposed Sainsbury‘s takeover.
Following the announcement that Nisa was in exclusive talks with Sainsbury‘s to purchase the convenience store chain, many members of Nisa have expressed concerns over potential demutualisation of the company, according to Talking Retail.
Nisa is currently run as a mutual company, owned by 1400 members who each have 250 shares in the company. If the firm is demutualised following outsider investment from Sainsbury‘s, reports suggest members with the full 250 shares could receive a payout of around £625,000.
READ MORE: Sainsbury‘s eyes Nisa takeover
Paul Cheema, who owns three retail stores told Talking Retail: “It is very important to keep Nisa the way it is. I joined Nisa for its mutuality and the great work it does as the best symbol group around and that is what I would like it to stay.
“It is a bit early to speculate what will happen, but it is not about the share value: it is about what we are going to get if it is sold off. Is it going to end up as a mutual or as a franchise model?”
Harry Goraya a 14 year Nisa veteran echoed Cheema‘s sentiments saying: “I would be very reluctant to give up the mutuality of the organisation and I think a lot of retailers feel the same way. I joined for its mutuality and independence and it would be a hard pill to swallow if that was lost at some later stage.
Kishor Patel who owns three Nisa stores, was more positive about the move stating: “As long as any deal is beneficial for the members in terms of increased sales and profitability, it is a win-win situation for everybody concerned.
“Standing still is not an option: if this deal doesn‘t happen, Nisa will certainly have to look at other options.”