Committee session to examine use of private equity in retail sector

• Non-inquiry session – Private equity and the retail sector
• Tuesday 19 December 2023, 10.00,
• Watch live on parliamentlive.tv.

Private equity structures enable greater control over businesses by using debt financing to acquire them outright allowing their owners a greater degree of control. In recent years it has been used to buy out several well-known retailers, including Asda, pre-pandemic when the cost of borrowing was low. However, interest rate hikes have left businesses bought using such leveraged buyouts with a heavy debt burden.

In July, following an evidence session at which MPs raised concerns over the opacity and sustainability of Asda’s private equity structure the firm provided further details which were later contradicted by a report in the Evening Standard. The Committee called on Asda to correct the record in writing and published the retailer’s response today.

Asda tried to outline their corporate structure in follow-up correspondence after an appearance before the Committee in July after the Committee raised concerns about the opacity and sustainability of private equity structures. A correction to this was requested by the Committee and published today following reporting that contradicted what the Committee had been told.

Panel 1 (10.00):

• George Lagarias, Chief Economist, Mazars Wealth Management
• Eli Talmor, Professor, London Business School
• John Plender, Columnist, Financial Times
• Nadine Houghton, National Officer, GMB

Panel 2 (11.00):

• Mohsin Issa, Co-owner, Asda
• Other Asda senior management to be confirmed.

Further information

• Business and Trade Committee
• About Parliament: Select committees
• Visiting Parliament: Watch committees

Image: UK Parliament/Elspeth Keep