Job losses as ex-ASDA owners move base to America

The EG Group was founded 24 years ago by brothers Mohsin and Zuber Issa

Four hundred people are facing redundancy as a result of a billionaire retail operator's decision to move its Lancashire headquarters to America.

The the EG Group, who run a range of fuel forecourts and previously owned ASDA, will retain at least 300 staff in Blackburn, less than half the current 700, Lancashire County Council's growth boss Quesir Mahmood said.has said.

The firm, founded 24 years ago by Blackburn brothers Mohsin and Zuber Issa, plans to relocate its central hub to Charlotte, North Carolina, and move its HQ to Bolton.

The brothers grew the business from a single petrol station in Bury, Greater Manchester, into a multi-billion-pound business, owning thousands of forecourts across the UK, Europe, North America and Australia, as well as ASDA.

Mr Mahmood's Conservative group counterpart Paul Marrow described the announcement as a "massive blow" to the town and expressed fears that its Haslingden Road office could become a "white elephant".

'Massive blow'

The two politicians were reacting to the announcement in EG Group's second-quarter business update which raised fears about the future of its staff and the future use of its £35m purpose-built offices which opened in 2020.

Mr Mahmood said: "While this represents a change for the company, our understanding is Blackburn will remain a key base for EG Group, with around 300 staff continuing to work from the borough.

"This is a significant and ongoing commitment to our borough and one we greatly value."

Mr Marrow said: "This is a massive blow to Blackburn.

"This is particularly sad because EG Group has been a flagship business headquartered in Blackburn for many years."

In 2020, the brothers bought ASDA for £6.8bn, but have since given up their roles with the supermarket chain.

Over the past 15 months, the two brothers have stepped down as EG Group co-chief executives while retaining seats on the board.

Zuber Issa is now focused on his EG On The Move business, which bought the group's UK forecourt business for £228m in January.

It remains based at the Haslingden Road head office, the Local Democracy Reporting Service said.