Wholesaler Hyperama is to exit the retail cash-and-carry sector following the sale of its two remaining depots to Dhamecha Group last week.
Industry sources confirmed the deal to Better Retailing this month, before it was officially announced on 3 November. The two sites in Nottingham and West Bromwich will transfer to Dhamecha on 14 November.
They will add to Dhamecha’s existing warehouses in Barking, Birmingham, Croydon, Enfield, Hayes, Leicester, Lewisham, Leyton, Watford and Wembley. Foodservice wholesaler Holland Bazaar had notably acquired Hyperama’s Peterborough site in October. Hyperama also sold its Tiger Foods foodservice arm to Giro Foods in the same month.
Accounts for the year ending 31 January 2022 showed a “challenging year” for Hyperama. BetterRetailing understands the sale of the cash and carries have formed part of a long-term strategy for the firm.
Dhamecha to buy Hyperama depots in West Bromwich and Nottingham
The accounts said: “The group has experienced a challenging year, with the ongoing increases in supply chain and freight costs. This has resulted in the group breaching its covenants during the year.
“The ongoing economic volatility has impacted upon the group’s post-year-end results and has resulted in the directors reassessing the group’s strategic aims, including a review of each division to assess its overall contribution to the group and to implement efficiencies and streamline costs.”
The results added that the sale of the sites would help it generate £15m in gross cash inflow to the business. During the trading period, Hyperama saw an annual decline of £206m in pre-tax profit, while turnover also fell from £144.6m to £141m.
Hyperama managing director Marcus Singh will remain director with wholesaler JK Foods following the sale. Part of the Hyperama group, JK Foods acts as a delivered wholesaler of specialist Asian products.
He said: “I am delighted to announce the sale of these two depots to Dhamecha Group.
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“I could not have wished for a better business to acquire the sites and take the business forward. Dhamecha is a fantastic operator and has successfully expanded already into the Midlands, and I know I am leaving my employees, customers and suppliers in good hands.”
Hyperama was part of Unitas, the wholesale buying group, of which Dhamecha is also a member. Unitas managing director John Kinney said: “This is a great acquisition for Dhamecha Group as they continue with their expansion plans outside of London.
“Knowing the Dhamecha business as I do, I know they will be successful in Nottingham and West Bromwich, and this is only good news for the existing customers in the region and our suppliers who work with them.”
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