EG Group to move HQ to America and UK office out of Blackburn in ‘huge blow’.

A fiscal update from Blackburn-based EG Group appears to reveal that the company will be leaving its hometown and relocating to the United States.

In a second-quarter business update, the company stated that its headquarters will be relocated across the Atlantic, while its UK operations will be moved from Blackburn to Bolton via the A666.

It means that after 24 years in the hometown of the multibillion-pound firm’s founders, Mohsin and Zuber Issa, it will relocate to Charlotte, North Carolina.

The Lancashire Telegraph understands Zuber Issa’s EG On The Move and Duckhams, which employ up to 300 people and are based at the EG offices, will remain in Blackburn.

According to an EG Group press release, the company is currently developing its back-office functions to provide the best possible support for its next phase of growth.

“This includes a continued transition to a US-managed organisation, with the Group’s headquarters in Charlotte, North Carolina, where key finance, legal, and other corporate personnel will be based.

“In parallel, the Group’s European Shared Service Centre will move to Bolton, retaining the company’s roots in the north-west of England while ensuring its office footprint reflects EG Group’s reduced presence in the UK and Europe.” Zuber and Mohsin Issa built the EG Group into a multibillion-pound company based in their hometown (image: NQ).

Moving the headquarters away from Blackburn, according to 4BWD Councillor Saj Ali, would be a “huge blow for the borough”.

He stated: “I sincerely hope that all jobs are retained and that families are not put at risk of finding work elsewhere. “I would urge the EG Group to keep the workforce from Blackburn on, and if relocation is the only alternative, then the staff should be part of the move.”

Aside from jobs, it raises serious questions about what will happen to the purpose-built EG Group offices off Haslingden Road, which opened in 2020.

In July, it was revealed that 72 jobs would be lost at the office as Asda Express ceased operations and relocated any remaining positions to Asda’s headquarters in Leeds.

The EG Group stated that the move to the United States reflects a reduction in its presence in the United Kingdom and Europe.

Senior figures at Blackburn with Darwen Council were also contacted for comment, but they appeared surprised by the news.

Mohsin and Zuber grew the EG Group from a single petrol forecourt in Bury to a multibillion-pound company with thousands of forecourts in the UK, Europe, North America, and Australia, as well as grocery and food service outlets.

They also purchased Asda for £6.8 billion in 2020 with TDR Capital, but both brothers have since left their positions at the supermarket.

Over the last 15 months, the two brothers have stepped down as co-chief executives at various points to focus on other projects, while remaining on the board. Russ Colaco, based in New York City, took over as CEO in April.

Zuber is now focused on his EG On The Move company, which acquired the EG Group’s UK forecourt business for £228 million in January, and will step down in June 2024.

EG On The Move remains based at the Haslingden Road head office.

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