A BRADFORD MP has said he is "very worried" after supermarket giant Morrisons announced a £331 million property deal as part of efforts to slash its significant debt pile.

The private equity-owned business announced last week that it expected to complete the "ground rent financing" deal around the start of October.

It said Morrisons, the fifth-largest supermarket chain in the UK, would sell 76 properties to an undisclosed company - and these would then be leased back to the retail firm.

Sky News reported that real estate investor Song Capital was the buyer.

Morrisons, which was founded by William Morrison in Bradford in 1899, was bought by US private equity business Clayton, Dubilier & Rice for £7 billion in 2022.

The deal comes amid efforts by Morrisons to reduce its heavy debt pile - although the company said the way it would use the proceeds of the deal was "under consideration".

Following the announcement, Bradford East MP Imran Hussain said the move had left him "very worried" about the direction of travel for Morrisons.

He said: "With Morrisons a key presence in many communities employing around 100,000 people across the country, Clayton, Dubilier & Rice must prove that this deal is in the best interests of staff and customers, and demonstrate that they're not just chasing quick profits for their shareholders, but that they have a real, long-term plan for Morrisons that won’t end in disaster."

Mr Hussain raised concerns about private equity firms "asset stripping to boost their profits in the short-term".

He said this could "devastate" the retail sector and pointed out that Debenhams collapsed under private equity ownership.

"Ever since Morrisons was sold off, I've had strong reservations about the involvement of a foreign private equity firm," Mr Hussain added.

The Telegraph & Argus put Mr Hussain's comments to Clayton, Dubilier & Rice and Morrisons.

Clayton, Dubilier & Rice declined to comment.

A spokesperson for Morrisons pointed to the firm's latest financial results, which said its like-for-like sales, excluding fuel and VAT, grew by 2.9 per cent in the three months to July 28.

Morrisons most recently reported a debt burden of around £4bn, although this is down significantly from a peak of £6.2bn.

The company also confirmed that it would raise its minimum pay for store workers to £12 in October as part of a £151m investment.