Bejam

Bejam was a British frozen-food supermarket chain founded in 1968 by John Apthorp in Edgware, London. Its creation followed the sale of the Apthorp family's potato-merchandising business, E. A. D. Apthorp, to the Ross Group. Apthorp disliked working within the larger organisation and established an independent retail business focused initially on frozen foods. The original name, Bejam Bulk Buying, used the name Bejam, formed from the names of members of the Apthorp family: Brian, Eric, John, Milly and Marion. The business entered a market that was still at an early stage in Britain. In 1968, fewer than one percent of British households reportedly owned a freezer, and frozen food retailing was not yet a mainstream specialist format. Bejam anticipated that domestic freezer ownership would expand and built its proposition around a combination of frozen-food sales and household appliances. By 1973, freezer ownership had risen to roughly two million homes, while Bejam had expanded to 72 stores and had become an important seller of freezers and microwaves as well as frozen food. The company also began developing supply and distribution capabilities, including a jointly owned cold-storage facility in Milton Keynes and interests in wholesale and food-supply businesses. Bejam was admitted to the London Stock Exchange in 1973. During the 1970s it expanded rapidly through new stores, appliance finance, logistics investments and acquisitions. By 1978, it had 147 stores and reported turnover of £44.23 million with profit of £2.34 million. Its appliance division partnered with Barclays Bank in 1976 to provide customer credit for refrigerators and freezers. This helped connect the retailer's food proposition with the infrastructure required for household frozen-food consumption. The company experimented with diversification during the late 1970s and early 1980s. In 1979 it bought 38 restaurants from EMI, mainly trading under Wimpy and Tennessee Pancake names, and planned a new fast-food fascia called Trumps. The experiment performed poorly: 22 outlets were sold in 1980, and Bejam withdrew from the restaurant and fast-food market in 1981 after recording a £1.9 million write-down. The company nevertheless continued to grow its core freezer-centre operation, purchasing sites from BAT and Fine Fare and later acquiring stores from Victor Value, Wm Low's Lowfreeze business and other retailers. By 1982, food sales alone had reached £208 million in turnover. Bejam opened its 200th store in Woodley, Berkshire, in 1984, in a ceremony attended by Anne, Princess Royal, and Mark Phillips. The chain reached 226 freezer centres by 1986 and strengthened its estate through the purchase of 45 Victor Value stores from Tesco. It also expanded into the Netherlands, where it opened three stores after acquiring a 50 percent interest in the wholesale distributor Smeets Diepvries B.V. in 1973. Bejam's rapid expansion brought it into increasingly direct competition with Iceland, a smaller rival that was developing a similar frozen-food retail model. The two companies competed for stores from failed or restructuring chains, including Orchard Foods. In 1986, Apthorp discussed a possible sale of Bejam with Iceland chief executive Malcolm Walker, but no agreement was reached at that stage. In 1987, takeover speculation involving Iceland and Hazelwood Foods contributed to a rise in Bejam's share price, while Apthorp transferred day-to-day management responsibility to Timothy How. Iceland launched a hostile takeover bid in 1988. Its initial share offer valued the transaction at approximately £240 million, but Apthorp argued that the proposal undervalued Bejam. Iceland later revised the offer to a combination of cash and shares. On 30 December 1988, Lloyd's Bank, acting as registrar for the offer, reported that shareholders holding 50.09 percent of Bejam's shares had accepted it. The acquisition was completed in 1989, ending Bejam's independent existence. Its stores and operations were absorbed by Iceland, leaving the brand as an important predecessor in the development of Britain's specialist frozen-food retail sector.

Bejam originated in the British potato-trading business E. A. D. Apthorp, which belonged to John Apthorp's family and was acquired by the Ross Group in 1968. Apthorp left after the acquisition and founded an independent store in Edgware under the name Bejam Bulk Buying. The Bejam name was constructed from the first names of members of the Apthorp family: Brian, Eric, John, Milly and Marion. The original retail concept was unusual for Britain because it concentrated on frozen food rather than operating as a conventional full-range grocer. The format depended on the expected spread of household freezers. At the end of the 1960s, freezer ownership was reported to be below one percent of British households; by 1973, approximately two million homes had freezers. Bejam used this shift to build a specialist chain and also sold the appliances that enabled customers to store frozen food at home. By 1973 the company had 72 stores and was listed on the London Stock Exchange. During its first major growth phase, Bejam developed a vertically supported operating model. It held interests in businesses supplying frozen food, acquired half of Dutch wholesaler Smeets Diepvries B.V., and opened three stores in the Netherlands. In 1974, it opened a jointly owned cold store in Milton Keynes with the National Freight Corporation. Its appliance division also formed a credit partnership with Barclays Bank in 1976, allowing customers to finance refrigerators and freezers bought through Bejam. The chain expanded substantially during the late 1970s. By 1978 it had 147 stores and 463,000 square feet of sales space. Reported turnover was £44.23 million and reported profit was £2.34 million. The company continued to report strong results in the following years, but management also pursued diversification beyond its core frozen-food format. In 1979 Bejam bought 38 restaurants from EMI, mostly trading under Wimpy and Tennessee Pancake names, and planned a new fast-food operation called Trumps. The initiative did not succeed. Twenty-two outlets were sold in 1980, and the company withdrew from the market in 1981 after a £1.9 million write-down. Bejam's main business remained freezer retailing. In 1980 it bought seven supermarket sites from BAT and 16 freezer centres from Fine Fare. Food-sales turnover reached £208 million by 1982. In 1984 the company opened its 200th store at Woodley in Berkshire, in a ceremony attended by Anne, Princess Royal, and Mark Phillips. The estate reached 226 freezer centres by 1986, after which Bejam bought 45 Victor Value stores from Tesco. Competition with Iceland became increasingly important. In 1985 the two companies competed for 12 stores formerly operated by Orchard Foods; Iceland won the contest with a reported £910,000 offer. Iceland consequently gained stores in areas where Bejam operated. John Apthorp contacted Iceland's Malcolm Walker in 1986 about a possible sale, but discussions did not produce an agreement. Bejam continued expanding in 1987 by acquiring Lowfreeze, the freezer-shop operation of Scottish chain Wm Low, nine former Sainsbury's Freezer Centres and Wizard Wine. At the same time, the market began to anticipate a takeover. Bejam's shares rose amid reports that Iceland and Hazelwood Foods might bid, and Apthorp handed day-to-day management to Timothy How. The relationship with Iceland ultimately became a hostile takeover. Iceland first proposed a share-based offer in 1988 valued at about £240 million. Apthorp said the offer undervalued Bejam, while Iceland's Malcolm Walker criticised Bejam's failure to issue a profit forecast. Iceland subsequently amended its proposal to include both cash and shares. On 30 December 1988, Lloyd's Bank reported that shareholders holding 50.09 percent of Bejam's shares had accepted the offer. The acquisition was completed in 1989, and Bejam ceased to operate as an independent company. Its development nevertheless helped establish specialist frozen-food retailing and contributed to the broader adoption of domestic freezer ownership in Britain.

• 1989

  Acquisition by Iceland completed

  [1]Bejamen.wikipedia.org

  Iceland completed its takeover of Bejam, ending the company's independent existence.

• 1988

  Iceland launches hostile takeover

  [1]Bejamen.wikipedia.org

  Iceland made a revised cash-and-share offer, and shareholders holding 50.09 percent of Bejam shares accepted the proposal by 30 December.

• 1987

  Further acquisitions and management transition

  [1]Bejamen.wikipedia.org

  Bejam acquired Lowfreeze, nine former Sainsbury's Freezer Centres and Wizard Wine, while John Apthorp transferred day-to-day management to Timothy How.

• 1986

  Network reaches 226 freezer centres

  [1]Bejamen.wikipedia.org

  Bejam reached 226 freezer centres and purchased 45 Victor Value stores from Tesco.

• 1984

  200th store opens

  [1]Bejamen.wikipedia.org

  Bejam opened its 200th store in Woodley, Berkshire, during a ceremony attended by Anne, Princess Royal, and Mark Phillips.

• 1982

  Food turnover reaches £208 million

  [1]Bejamen.wikipedia.org

  Turnover from food sales alone had grown to £208 million.

• 1981

  Exit from restaurants and fast food

  [1]Bejamen.wikipedia.org

  After selling outlets and recording a write-down, Bejam withdrew from its restaurant and fast-food activities.

• 1979

  Restaurant diversification

  [1]Bejamen.wikipedia.org

  Bejam bought 38 restaurants from EMI and announced the Trumps fast-food concept.

• 1978

  Chain reaches 147 stores

  [1]Bejamen.wikipedia.org

  Bejam reported 147 stores, 463,000 square feet of sales space, £44.23 million in turnover and £2.34 million in profit.

• 1976

  Appliance-credit partnership

  [1]Bejamen.wikipedia.org

  Bejam's appliances division partnered with Barclays Bank to offer customer credit on refrigerators and freezers sold in its stores.

• 1974

  Milton Keynes cold-storage facility

  [1]Bejamen.wikipedia.org

  Bejam and the National Freight Corporation opened a jointly owned 3.3 million square foot cold store in Milton Keynes.

• 1973

  Public listing and rapid expansion

  [1]Bejamen.wikipedia.org

  Bejam had expanded to 72 stores, began selling freezers and microwaves, and was listed on the London Stock Exchange.

• 1973

  Entry into the Netherlands

  [1]Bejamen.wikipedia.org

  The company acquired a 50 percent interest in Dutch frozen-food wholesaler Smeets Diepvries B.V. and subsequently opened three Bejam stores in the Netherlands.

• 1968

  First Bejam store opens in Edgware

  [1]Bejamen.wikipedia.org

  John Apthorp founded Bejam Bulk Buying and opened the first store in Edgware, London, with a specialist frozen-food proposition.

A specialist frozen-food retailer built around the growth of household freezer ownership, with a complementary appliance business and a broad network of freezer-centre stores.

• Food retail · 1968

  Frozen food

  Frozen food was Bejam's core retail category and the foundation of its specialist-store model. The chain concentrated on frozen products rather than presenting itself as a conventional full-range supermarket. Its growth was closely linked to the increasing ownership of domestic freezers in Britain during the 1970s and 1980s.

• Household appliances · 1973

  Freezers and refrigeration appliances

  Bejam sold freezers and other refrigeration appliances alongside frozen food. This complemented its retail format by helping customers acquire the equipment needed to store frozen products at home. The appliances division later offered customer credit through a partnership with Barclays Bank.

• Household appliances · 1973

  Microwave ovens

  Microwave ovens were among the household appliances sold through Bejam's expanding appliance business. They formed part of the company's broader attempt to serve domestic food-storage and preparation needs alongside its frozen-food retail offer.

• Fast food · 1979

  Trumps

  Trumps was a planned fast-food chain announced by Bejam during its late-1970s diversification. The first branch opened in Romford, but the initiative did not become a sustainable business and Bejam exited the restaurant and fast-food market by 1981.

• 1988

  Response to Iceland's hostile takeover bidM&A

  Background

  Iceland sought to acquire Bejam as the two specialist frozen-food retailers competed for stores and market position.

  Action taken

  Iceland first offered shares valued at approximately £240 million and later amended the proposal to include cash and shares. John Apthorp opposed the initial offer, arguing that it undervalued Bejam.

  Aftermath

  Shareholders holding 50.09 percent of Bejam accepted the offer by 30 December 1988, and Iceland completed the takeover in 1989.

  Initial takeover offer value. Approximately £240 million (1988)

  • Iceland — Iceland made the hostile offer and later revised it to include cash and shares; Malcolm Walker criticised Bejam for not issuing a profit forecast.

  Source

• 1979

  Diversification into restaurants and fast foodStrategy

  Background

  Bejam was expanding rapidly in frozen-food retailing and sought additional growth outside its core format.

  Action taken

  The company bought 38 restaurants from EMI, mainly trading under Wimpy and Tennessee Pancake names, and launched the Trumps fast-food concept.

  Aftermath

  The diversification failed to develop as planned. Twenty-two outlets were sold in 1980, and Bejam withdrew from the market in 1981 after a £1.9 million write-down.

  Write-down. £1.9 million (1981)

  Source

1. 1Bejamen.wikipedia.org
2. 2Corporate Eponymy: A Biographical Dictionary of the Persons Behind the Namesbooks.google.com
3. 3Dictionary of Trade Name Originsbooks.google.com
4. 4Corporate Finance: Principles & Practicebooks.google.com