23/08/2004 - Dillons Stores Ltd sold to TM Retail

T&S Stores Ltd today announce the sale of its subsidiary Dillons Stores Ltd to Forbuoys Ltd trading as TM Retail.

When Tesco acquired T&S Stores in January 2003 it made clear its intentions to sell on Dillons. Contracts have now been completed on the sale of Dillons Stores Ltd and the business will transfer immediately.

TM Retail based in Brentwood, Essex, has successfully traded for many years. The company currently has 1161 stores in the Newsagent and Convenience store sector trading as Forbouys, Martin’s, More and McColls. This acquisition adds a further 181 stores to the estate.

Steve Murrells, Chief Executive of T&S said: “ We stated at the outset that we wanted to find the right buyer for Dillons, and we have done that.

“ TM Retail have a great deal of experience in this sector, and I believe their expertise will help take the Dillons business forward in the future."

TM Retail Managing Director, David Saunders said that “the takeover was good news for customers and good news for Dillons staff. This ensures that those customers across the UK wanting home news delivery and news and magazine ranges that are tailored to fit specific locations and customer profiles will continue to have their demands met. It will also secure the future of Dillons staff.

He added: “We see the integration as something which can be achieved quickly and smoothly. At present there is no intention to change the various Dillons fascias as we have long and proven experience of operating businesses under different fascias.”

ends

Notes for Editors

1. Tesco acquired T&S Stores in January 2003. The T&S portfolio included One Stop Stores, Day & Nite, Dillons and Supercigs.

2. T&S stores Ltd and TM Retail have completed contracts on Dillons Stores Ltd, and Forbuoys Ltd trading as TM Retail will take ownership of Dillon Stores Ltd as of 22nd August 2004.

3. Dillons is a long established Newsagent with 181 outlets concentrated in the Midlands, North West and North East.

4. TM Retail is based in Brentwood, Essex with 1161 stores trading as Forbuoys, Martin’s, More and McColls

For more information, please contact the Tesco Press Office on 01992 644 743, or out of normal office hours, please call 01992 644 733, option2