Holland & Barrett owners in talks with struggling Planet Organic
Holland & Barrett owner LetterOne, is in talks about a last-minute rescue bid for struggling organic supermarket chain, Planet Organic.
The Russian-linked investment group, is among a handful of suitors who remain interested in buying parts of Planet Organic which is on the brink of collapse.
The Planet Organic chief executive is said to be focused on keeping the business intact however, a rescue deal for the supermarket is likely to result in significant job losses among its 360 workforce.
After talks with Waitrose fell through, Planet Organic had sought an extension to a notice of intention to appoint administrators that it filed at the end of March. This move will give the chain until close to the end of the month to secure a last-minute deal.
George Dymond, Planet Organic chief executive said: “While we have taken every possible action to improve our position, including additional investment from our existing shareholders, we have so far been unsuccessful in sufficient funds needed to support the business and the growth plan.
“In the meantime, however, we have had to take legal steps to protect the position of the business to afford us the time to be able to find a solution to the challenging situation we face, including filing at court a notice of intention to appoint administrators which is the first step in a potential administration process.”
Other interested rescue parties include Redbus Ventures, an investment firm set up by Lovefilm co-founder Simon Franks.
Planet Organic, which was founded in 1995 by Renee Elliot, has been working with Interpath on a review of its strategic options since early this year.
The chain sells organic food and drink, as well as healthcare and bodycare products.