Despite Asda’s financial difficulties, its owners have received a significant payout.
- TDR Capital, which holds a major share in Asda, reported a £43.9m profit for its partners.
- This profit marks an increase from the previous year’s £33.6m distribution.
- The highest-earning partner received a share of £2.9m according to reports.
- Asda is facing declining sales and a large debt, impacting its market position.
In the face of ongoing challenges, the private equity owners of Asda have benefited from a substantial payout. This figure has been documented in the latest accounts filed by TDR Capital, a key stakeholder in the supermarket chain. Despite Asda dealing with financial struggles, TDR Capital’s partners shared a profit pool amounting to £43.9 million for the year ending March, reflecting a notable increase from the £33.6 million dispensed the previous year.
TDR Capital, recognised prominently for its ownership stakes in Asda alongside the Issa brothers, recently expanded its investment by acquiring additional shares from Zuber Issa. With a current ownership of 67.5% in the supermarket, TDR Capital’s involvement has been significant. However, Asda has been navigating tough times, characterised by a decline in sales and the burden of a considerable £6 billion debt.
According to data from NIQ, Asda was the only major supermarket to experience a reduction in sales during the critical pre-Christmas trading period. This downturn led to a reduction in Asda’s market share, decreasing by 1.1 percentage points to settle at 12.1%. This market performance highlights the retailer’s current difficulties as it contends with both internal and external pressures.
Despite the financial challenges Asda faces, its ownership structure allows its stakeholders to benefit from substantial profits.
