Financial hurdles have coincided with growing concerns around Asda’s trading performance, as the supermarket has lost customers to rivals in recent years.
The supermarket now has just 13.8pc of the grocery market, compared with 14.8pc in early 2021, according to Kantar. In contrast, Tesco commands a 27.2pc share of the market with Sainsbury’s at 15.2pc.
Sales at Asda were up just 0.8pc in the 12 weeks to 23 March compared with a year earlier, according to figures from analysis firm NIQ, which showed that the supermarket lagged behind all major rivals.
A leading retail analyst said: “When they are lagging their competitors so far in terms of sales momentum, you have to ask ‘how long can that be sustained?’”
Dwindling sales have stoked concerns among senior figures at the business, which has led to speculation over Mohsin Issa’s role in running the company.
His leadership has overseen significant cost-cutting over the past 18 months, such as reducing working hours for tens of thousands of staff in a bid to reduce its wage bill.
This has fuelled discontent among workers, which has been exacerbated by questions over the company’s ownership.
The Telegraph revealed in February that Zuber Issa was seeking to offload his 22.5pc stake in the business, which followed claims of a rift between him and his brother, Mohsin.
The pair have denied claims of a rift.
Most recently, the company was also rocked by an IT meltdown that led to thousands of workers receiving incorrect payslips.
An Asda spokesman said: “We made strong progress against our strategy in 2023 with significant investment in the business to drive long-term sustainable growth, while continuing to deleverage and repay debt.”
