Alldays faces further financial problems after its franchises announce they are withholding fee payments worth Â£200,000 a week. They disagree with the rescue plan being put together by Alldays which involves buying back the stores still in the hands of the RDCs.
The CWS emerges as one of the favourites to buy Alldays as the troubled convenience store chain considers a number of possible takeover bids. It also completes the restructuring of its 32 RDCs, with the sale of its stake in the final four in Anglia and the south west to management.
Alldays sells 32 stores to rival Costcutter.
Alldays' management abandons any hope of selling the company and decides to trade out of its debt crisis. Talks about the sales are terminated because none of the offers are acceptable. Meanwhile, former Sainsbury director, MD David Clapham resigns after a disagreement with the board over the strategic direction of the company - he is believed to want to bring down Alldays prices so they are more in line with other c-store operations.
Alldays announces that it is looking to significantly step up the number of independent retailers that are operating stores under its franchise.
Interest costs of Â£6.1m push Alldays to a pre-tax loss of Â£4.6m. However chief executive Stuart Lawson remains buoyant. He says: "We have a long-term strategy and we are ahead of where we aimed to be at this time."
Alldays opens its first new store Â in Barry, South Wales Â since the disastrous slump in 1999 which left it with debts of more than Â£18m. It also confirms it is in talks with a third party to sell the group's entire estate.The Co-operative Group is suggested as a frontrunner for the chain which has a market value of some Â£2.5m but debts of Â£190m.
The Co-operative Group buys Alldays for Â£131m from receiver PricewaterhouseCoopers.