Plans for new Costa in Leyland Asda axed as coffee chain seeks new site in town

The British coffeehouse chain had planned to open its new Leyland branch in a vacant unit at the supermarket in Towngate, with an application submitted to South Ribble Borough Council in January.

But plans for the new Costa were axed after Asda's £6.8billion takeover by Lancashire's billionaire Issa brothers, Mohsin and Zuber, in February.

Their Blackburn-based EG Group partnered with private equity firm TDR Capital to acquire the supermarket chain from US-owned Walmart, bringing it back into British ownership after more than 20 years.

Simon Vardy, owner and managing director of Sim Trava Ltd - one of the biggest Costa franchisees in the North West - said the EG Group had stopped plans for a Costa in its Leyland store because it has relationships with other brands.

One of those brands is rival coffee chain Starbucks, which has nearly 100 stores based at EG petrol stations and motorway services across the UK.

But it might not mean the end of Costa Coffee's plans for Leyland.

Franchisee Mr Vardy said his firm stills hopes to open a Costa elsewhere in Leyland and says they are actively looking for a new site in the town.

He told the Post: "When ASDA was purchased by the EG Group they stopped the project going forward as they have relationships with other brands.

"We were very disappointed and are looking for another potential unit in the town but have yet to find one."

EG Group and Asda have been approached for comment and an update on plans for the vacant unit in the Leyland store.

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