Leading cash and carry sold to Midlands outfit

May 22 2008 by Karen Dent, The Journal

ONE of the North East’s largest wholesale businesses has been bought out by a West Midlands company.

Tyne Tees Cash & Carry, a Middlesbrough firm which made a pre-tax profit of £1.14m on a turnover of £47.3m in the year to January, has sold its two depots in Gateshead and Middlesbrough to Wolverhampton-based Blakemore Wholesale for an undisclosed sum.

Blakemore Wholesale’s managing director Sam Wilcox said: “We made the initial approach. We have been looking to grow and expand our current business, and through the acquisition of Tyne Tees we have the opportunity to take on two successful depots that are of the right size and geographical location for Blakemore.

“They were two established, well-run businesses. It will also help us expand our delivery operation. We already deliver in the Newcastle area and it is far more cost-effective and environmentally-friendly to operate our deliveries from there.”

Tyne Tees, privately owned by a family from Woolsington, near Newcastle Airport, will keep on its 80 staff and its name.

“It is a successful brand name in that area, I don’t see any reason to change it,” said Mr Wilcox.

“We are looking to retain all of the staff. One or two have left due to retirement but our aim is to grow the business and increase employment.”

Tyne Tees supplies goods to independent retailers and Blakemore, which already operates eight cash and carry depots outlets around the UK, supplies to more than 700 Spar convenience stores. It employs more than 5,000 people and has a turnover in excess of £600m annually. The group also has a fresh food and a shop-fitting division.

Tyne Tees and Blakemore are both members of Landmark Wholesale, a trade association for the cash and carry industry.