Albertsons Cos., the parent company that owns Malvern-based Acme Markets, may seek to offload some of its nearly two dozen grocery chains as the company launches a review of its business strategy, analysts said.

The sale of shares in the company would reward Cerberus Capital Management and Philadelphia-based Lubert-Adler Partners, two large investment firms that took Albertsons to the public markets and now own nearly half of its shares. In December, New York-based Cerberus held a 32% stake and Lubert-Adler 12%. The companies did not respond to requests for comment.

The Boise, Idaho-based supermarket operator went public in 2020, selling around 50 million shares at $16 apiece. Since the IPO, share prices have risen about 85% before the announcement of the revision on Monday sent the stock higher as Wall Street welcomed the move. The stock price closed at $35.70 on Thursday, up $3.70, or more than 11%.

» READ MORE: Acme grocery chain is sold to investment group

Albertsons, the second-largest grocer in the United States behind Kroger, blasted potential suitors in its Feb. 28 announcement. The company said the review, aided by Goldman Sachs and Credit Suisse, would include consideration of “potential strategic or financial transactions” and entertaining “investigations,” generally outside of possible merger or acquisition offers.

“The Board of Directors believes that the continued strength of our business and the breadth of our portfolio of assets warrants careful and thoughtful consideration of all possible avenues towards maximizing value creation,” said Chan Galbato, co-chair of the board of directors, in a press release. Galbato is Managing Director of Cerberus Operations, which provides operational consulting to Cerberus portfolio companies.

Albertsons gave no timeline for the review, gave no indication that it was leaning towards a strategic direction, and added that the review could result in no action at all. A spokeswoman said Albertsons had no further comment.

“These investors buy assets for a song, put some money in it, improve the stores, and then resell for a profit. Now they want to get good returns on that,” said John Stanton, professor of food marketing at St. Joseph’s University in Philadelphia “Their real business is to sell businesses, not food. That’s what you hire investment bankers for, to sell assets.”

Acme could be sold “as real estate” to other chain stores, said Stanton, who is unrelated to the review. Acme, based in East Whiteland Township, has about 161 stores in Connecticut, Delaware, Maryland, New Jersey, New York and Pennsylvania.

Although the review surprised some industry observers, analysts at Morgan Stanley at Guggenheim speculated that parent company Albertsons might be worth more in pieces, offering a large payout to its biggest investors. Albertsons operates approximately 2,300 supermarkets, 1,700 stand-alone pharmacies, 400 gas stations and dozens of warehouses and food processing plants, spread across 34 states. Besides Acme, Albertsons’ major brands include Safeway, Jewel Osco and Vons.

Albertsons and other grocers have felt growing pressure, not just from Walmart, whose in-store markets rank it among the largest supermarket operators, but also from Amazon, whose same-day deliveries and Whole Buy Foods positioned it to sell more groceries. Grocery consultants say even the biggest chains will need to spend more on marketing, inventory, automation and delivery services to protect their market share.

Cerberus’ past investments include Chrysler Corp.; one of his current ventures is FirstKey Homes, which has purchased 25,000 suburban homes across the country for rental.

Based in Philadelphia, Lubert-Adler is a real estate company whose main investors include Pennsylvania state pension funds. Partner Dean Adler was the architect of the investment funds’ purchase and expansion of Albertsons in the early 2000s in hopes of cutting costs and increasing sales under one management team.

As Bread and Sandwich Sales Soar, “Hub & Spoke” Cafe Model Drives Operational Efficiency

Dillon, Montana (RestaurantNews.com) The industry’s leading fresh bread and coffee franchise reports that same-store sales for the fourth quarter of 2021 are up 14.9% from 2019, the last “normal” year of comparison. For a comparison of similar sales with big box competitors and other QSRs in the space, advertised big harvest markets for the same quarter, coffee sales increased by 17.7% compared to 2019.

“As a high-growth concept, we have chosen to perfect our expansion model, which aligns with the direction of the fast-casual restaurant environment that must provide investors and entrepreneurs with cutting-edge strategies to raise real estate challenges. and production costs, while efficiently serving ‘main street’ and surrounding communities,” said Eric Keshin, president and chief marketing officer of Great Harvest Bread Company. “We have identified 50 markets positioned for this multi-unit expansion program.”

This Hub & Spoke concept is designed for the multi-unit operator to reduce costs through smaller footprint coffee locations to maximize the production capabilities of a hub.

The hubs are full bakery cafés that can accommodate 40 to 45 people and have all the artisan bread production on site. The shelves operate like cafes; they have fresh bread provided daily by the Hub and must be located within 40 minutes of a Hub. Their menu is the same as their Hub; they bake items on site like cookies, biscuits, scones, etc., to maintain the aroma of a bakery.

The footprint of a Spoke should be approximately seventy percent (70%) of the footprint of a Hub. This significantly reduces initial development costs as well as operating costs.

the Hub & Spoke model can be purchased from existing locations with an active revenue stream to then expand around them, partner with single operators to further expand market presence and enter new markets with Hub & Spoke units. Opportunities exist in the following markets: Atlanta, Chicago, Birmingham, Greenville and Spokane and in the following states: California, Florida, Texas and Washington DC

The Southlake, Texas owners took over an existing location and quickly added two additional shelves around the legacy store. In Elkins, WV, the owner first introduced the business to the new market, then added the second location in his second year.

The concept of making bread made from scratch was deemed essential, as bakery cafes across the United States continued to feed communities during food shortages and provided donated bread to local food banks.

“We held on and grew during the pandemic as franchisees adapted to meet consumer needs. From popular annual LTOs, premium breakfast sandwiches to on-the-go convenience, our wide variety of specialty sandwiches and sweets naturally sets the company apart from QSR big box competitors,” said Eric Keshin, President and marketing director of Great Harvest Bread Company. “The demand for authentic bread is obvious.”

According to Technomic 2020 Sandwich consumer trends report, consumers ate an average of 3.3 sandwiches per week, and nearly 60% of those sandwiches were purchased from foodservice providers. That same report says 61% of consumers chose to buy a breakfast sandwich at least once a month, up from 57% in 2018.

In addition to its strategic expansion model, available across large territories, the seasoned franchisor is investing in new drive-thru locations, further supporting online ordering and advancing its loyalty platform.

To learn more about franchise opportunities with Great Harvest Bread Company, visit https://www.greatharvest.com/franchise.

About Great Harvest Bread Company

Great Harvest Bread has spent the past 45 years perfecting the combination of ingredients to make the freshest, most authentic breads and pastries, as well as the newest sandwiches, cereal bowls and soups, reaching nearly 200 locations, all of which continue to grind theirs. Wheat Golden Triangle every morning from scratch. Providing local communities with authentic daily fresh breads and pastries, the brand is now expanding through franchising with a new bakery-café model ideal for timeshares. Open for three parts of the day – breakfast, lunch and dinner – the menu has expanded beyond a wide variety of soft and delicious breads to include soups, sandwiches and cereal bowls.

Contact:
Maria Antonia Barragan
PR Fishman
[email protected]
847-945-1300 ext. 269

This article is reproduced with permission from The escape house, a newsletter for second homes and those who want it. Subscribe here. © 2022. All rights reserved.

Real estate in the Hamptons is so hot right now, it’s only natural that it’s the subject of a new reality TV show. Danielle Hyams from The Escape Home spoke with one of the star agents, JB Andreassi, who works with Nest Seekers, about how he ended up on the show, what buyers want and where the next Hamptons. New episodes of the “Selling the Hamptons” stream on Discovery+ every Thursday. Edited excerpts:

Nearly two years after restaurants inside New York were first closed, restaurants and bars continue to close. At least 1,000 have closed since March 2020 due to the economic downturn caused by the coronavirus pandemic. Due to the difficulty of tracking restaurant and bar closures, experts say that number could be even higher and will likely take months or even years to assess.

Among them are the pop-up bubble tea shop Undited by Solely Tea as well as a Dominican favorite El Gran Castillo de Jagua. Below, Eater documents the city’s permanent restaurant closures so far. If a restaurant or bar has closed in your neighborhood, let us know at [email protected]. This post will be updated regularly.

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January 28

Chelsea: Wine bar the drunk horse took its last gallop. The place was known for its flatbreads and Mediterranean snacks. A tipster shared the news with Eater earlier this month and now the company’s website is no longer operational; Google also marks it as permanently closed.

Hill Clinton: Neighborhood favorite the Good Batch has closed its ice cream shop, the Good creamery. The scoop shop, which operated for just over a year and was located directly opposite Anna Gordon’s bakery on busy Fulton Street, served a rotating selection of flavors, some inspired by popular cookies like a caramel brownie swirl. A for rent sign was recently spotted on the storefront and Eater confirmed the closure via social media.

Lower side is: Earlier this month, Eater shared that Crab Du Jour had closed in the neighborhood. Now Bowery Boogie is reporting that Juicy King Crab Express is no longer after less than a year of operation.

Jackson Heights: A white castle which had been in Queens for over 80 years has closed for good. The family business opened in 1935 and has been owned by the same owner ever since.

Perspective heights: Beloved Thai place Watch by Plant Love House closed in Brooklyn. Manadsanan Sutipayakul’s last remaining restaurant is Noods n’ Chill in Williamsburg, which she opened with her daughters and son in January 2020. The Look by Plant Love House team tell Eater they don’t have the intend to open another restaurant.

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January the 21st

Bay Terrace: After 50 years of activity, Jack’s Pizza and Pasta came out at the Bay Terrace mall. The pizzeria’s lease expired last September and Cord-Meyer Development Company, which owns the mall, has not renewed it. According to local publication Patch, Jack’s and Cord-Meyer have reached an agreement that the restaurant could operate from its longtime home on 26th Avenue until January 15, when it will close permanently.

East Village: Tatsu Ramen appears to be permanently closed at 167 First Avenue, between 10th Street and 11th Street. Neighborhood blog EV Grieve noted in November that the three-year-old ramen shop had been temporarily closed for more than a month. The First Avenue space is now advertised on the RIPCO real estate website.

Lower side is: After a year of rapid expansion in all five boroughs, the Cajun seafood boil chain Crab Of The Day closed its storefront at 384 Grand Street, Suffolk Street, according to Bowery Boogie. The closure leaves the chain with just under 20 locations in New York State.

Lower East Side: Uchu, chef Eiji Ichimura’s 10-seat sushi counter, closed after four years on Dec. 30, according to a notice on its website. The restaurant of owner Derek Feldman, who also runs the famous restaurant chain Sushi On Jones, piled on extravagant ingredients like caviar, truffles and wagyu, but lacked flavor, according to an early review by Eater critic Ryan Sutton.

Meatpacking District: Intersect by Lexus, the luxury car brand’s highly rated #sponcon restaurant, is no more. As Eater previously reported, the restaurant run by Danny Meyer’s Union Square hospitality group closed after three years for reasons unrelated to the pandemic. A representative for Intersect declined to provide a reason for the closure, calling the restaurant a “huge success.”

Union Square: Restaurateur Simon Oren has closed the Union Square location of his 5 napkin burger restaurant chain, which also has locations in Hell’s Kitchen, the Upper East Side and the Upper West Side. The burger joint closed less than a month after year-old Tamam Falafel, located next door and also owned by Oren.

Upper East Side: Bistro corner Eat Restaurant and Bar permanently closed on December 30. The restaurant, known for its martinis and raw bar happy hours, hopes to reopen at another location “very soon,” according to a note announcing the closure on its website.

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January 14

East Village: Downtown Restaurant from Virginiaknown for its burger, closed for New Years at East 11th Street on Avenue C. The team tells Eater that its lease was up for renewal and they will instead look elsewhere for a bigger space. The restaurant, which opened in 2015, had faced both the challenges of a fire and the pandemic.

Green Point: Charming neighborhood restaurant filled with books Milk & Roses, closed at 1110 Manhattan Avenue near Clay Street. But fear not, according to their Instagram post, the team plans to move one block away to 1140 Manhattan Avenue at Box Street in the next few days — stacks of books are coming in for the move.

Upper West Side: my favorite dish, a kosher restaurant that had been a downtown staple for over 40 years, says goodbye. According to the West Side Rag, the closure was linked to issues with a lease renewal. The publication also reports that the company will be looking to relocate its restaurant elsewhere.

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January 7

Chinatown: unedited by Solely Tea, a spinoff of Chinatown sneaker and boba shop Solely Tea, has closed for good after a brief five-month run. The showcase focused on high-value shoes curated by siblings Amy and Kenney Zhang. It opened last August, but a grocery store has since opened in its place.

East Village: The seemingly always-busy retro-themed cocktail party Boilermaker called it quits after seven years in the neighborhood. Earlier this week, the team announced a final call for wings and drinks on their Instagram account. Owner Greg Boehm’s other businesses, including the Cabinet and famed Mace bar, will continue to operate.

Hell’s Kitchen: pub on the road, a bar that opened on Ninth Avenue in 2019, closed just before the New Year. The bar faced several challenges, including reports of gas line issues and a fire on the roof of the building, combined with difficulties stemming from the pandemic.

Downtown : Greek place Molyvos — which had been open in Manhattan for 25 years — closed. The team announced the closure on its website, saying the restaurant inside the Wellington Hotel would be undergoing renovations and the owner would be looking for a new location. Restaurant group Livanos also owns Oceana and Hudson West, as well as Westchester City Limits Diner and Moderne Barn businesses which remain open.

Nomadic: Chef Jonathan Benno’s eponymous restaurant Beno had just landed a 2021 Michelin star, but that didn’t prove enough to stop the chef from shutting down the dining destination at Hotel Evelyn. The restaurant, which received a rare three-star review from food critic Pete Wells in 2019, had been closed for most of the pandemic. In September last year, Benno reopened briefly only to close again at the end of the year. According to New York Times, Benno is also leaving Leonelli Bakery and Bar Benno, his two other projects at the hotel, operated by the Bastion Collection and Triumph hotels; the bar will be renamed Evelyn Bar and Leonelli Bakery will keep its name under its new management. Benno also shared in a statement to Time“[COVID-19] tested our wits, strengthened our bonds and forced a serious reassessment.

Perspective heights: The essential of the neighborhood El Gran Castillo de Jagua announced its permanent closure last week, concluding a 34-year run in Prospect Heights. “We are sad to inform you that after thirty-four years, El Gran Castillo de Jagua will be closing after losing our lease,” owner Sergio Olivio shared in a Facebook post. The beloved Dominican restaurant closed once before in 2013, after losing its lease at its former location at the corner of Flatbush Avenue and Park Place. In a Facebook comment, the restaurant shared that it has no plans to reopen at any other location.

Union Square: The location of Union Square Tamam Falafel, owned by Simon Oren of neighbor 5 Napkin Burger, has closed at 150 East 14th Street after a year in business. In January 2021, the vegan falafel spot opened in the former 5 Napkin Burger Express location in Oren. According to EV Grieve, the Upper East Side outpost of Tamam will remain open, and Oren plans to open in a new, undisclosed location soon.

EL PASO, Texas (KTSM) – The old Mount Hope Lutheran Church is being demolished in hopes that new property will take its place, bringing commercial development to the community.

The property is located at 9640 Montwood Drive, corner of McRae Boulevard, directly across from Eastwood High School.

According to city zoning documents, the owner hopes to turn the area into a neighborhood center with small shops and restaurants.

Jason Barreras is listed as the owner. Barreras was unavailable for comment, but his real estate agent, Rebecca Rojas, told KTSM he grew up in the area, attended Eastwood High School and wanted to give back to the community.

“His mother still lives in the area, he knew the community was emotionally attached and when the church showed signs of deterioration and no one was caring for it, he stepped in and wanted to do something to benefit the neighborhood” , said Rojas.

According to city zoning documents, the owner is asking to turn the lot into a commercial zone, adding about six buildings and parking for small businesses.

Residents within 300 feet of the location were notified by mail on November 4, 2021 of the development.

As of November 17, 2021, only one owner has responded via email, objecting to the center.

The couple living opposite the location wrote an email saying they had lived there for 50 years and said they were ‘strongly against commercial zoning.

They listed factors such as noise, pollution and fear of increased traffic in the area.

Rachel Trevino, another neighbor, told KTSM she was mostly worried about traffic as it is an already busy road.

“I’m a little against it because there’s too much traffic and it’s going to cause more.”

However, her husband said he was excited about the new development.

Other neighbours, like George Younes, said it would be good for the community.

“It’s a good neighborhood, it’s a good neighborhood, I think it’s good for the economy, good for the school, everyone benefits,” Younes said.

Rojas said the owner wanted to bring cafes, medical services and possibly a breakfast place to the street and said there was a need for restaurants.

“We don’t have a little mall, you have to go all the way to McRae or Montana or to the freeway, so it’s very convenient,” Younes said.

Rojas said the owner had several meetings with the Cielo Vista neighborhood association and took the neighbor’s feedback into account when planning the development.

“We received many requests from restaurants,” Rojas said. “In my mind, we don’t call it a mall, it’s a strip with a row of buildings, we want to create a neighborhood environment that has an aesthetic and buildings that resemble what the Eastwood neighborhood is.

Zoning must be approved by the El Paso City Council, which will discuss the matter at the Feb. 1 meeting.

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It has been one of Bristol’s best-loved stores for 70 years, but Marks and Spencer in Broadmead is closing for the last time today.

The popular M&S store has been part of Bristol’s shopping district since 1952, the branch selling everything from clothing and housewares to food and flowers.

The decision to close the Broadmead store after 70 years was driven in large part by changing consumer habits in the retail industry, which has seen a major shift towards online shopping in recent years.

READ MORE: Two Bristol favorites team up to launch epic sandwich

The closure is part of a larger restructuring of UK real estate by M&S, which has 17 other stores in the South West, including Cribbs Causeway and Longwell Green.

While not fully owning the property, it is understood that M&S ​​has a financial interest in the Broadmead building and will work with Bristol City Council on plans for its future redevelopment.

The closure of such a historic store leaves another big void in Broadmead’s retail offering.

The future of the Broadmead M&S building is unclear at this time and, with the nearby empty Debenhams store, which closed last year, there has been no confirmation of a new buyer.

The former six-story Debenhams store closed in May 2021, ending nearly 50 years in the city for the chain.

It was one of 50 Debenhams stores across the UK to close after the chain took over.

There is no update on a buyer for the Debenhams building, or if it will remain as a single store or split into a mix of recreation and accommodation.

In Leeds, the former Debenhams store is given a new lease of life as it transforms into a mixed-use development with a combination of studio and retail space.

When the closure of the M&S Broadmead store was announced at the end of 2021, M&S Regional Manager John Dorrington said: Brilliant shopping experience.

“We appreciate that this will be disappointing news for some, and we would like to thank all of our customers who have shopped with us in the store. We will work hard to continue serving them in our 17 stores in the South West, including Cribbs Causeway and Longwell Green.

“The vast majority of colleagues will join our surrounding stores in the region. I would like to thank both our colleagues and our customers for their service and support.

M&S will continue to invest in its Cribbs Causeway store, which is regularly used as a test site to test new digital services, such as contactless, click and collect and returns, before rolling them out across the UK. .

In May 2021, M&S announced proposals to close 30 more stores over the next decade as part of turnaround plans.

It followed an announcement in 2020 confirming that 7,000 jobs would be cut in its UK stores and in management, although around a tenth of the jobs lost were voluntary layoffs and early retirements.

The majority of the staff at the Broadmead store would have been offered work in other M&S stores in the city.

The company recorded a pre-tax loss of £ 201.2million for the year ended March 27, 2021, compared to £ 67.2million the previous year.

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State aid to households and businesses, along with the strong performance of Irish multinationals, mitigated the effects of Covid-19 and provided a solid platform for recovery once the economy reopened last spring. The post-containment rebound has been stronger than expected. Employment grew 9.9% in the year through June, with nearly all of Covid’s job losses recovered. At the same time, output rebounded with 16.3% year-on-year GDP growth in the first half of 2021.

The consumer

Income supports have protected vulnerable workers from the worst effects of the pandemic, and in the wider labor market, incomes are currently increasing by 3.9% per year. With spending reduced by the lockdowns, Irish households deleveraged by more than € 9 billion between February 2020 and September 2021, while savings deposits increased by € 22.75 billion over the course of the same period. This creates leeway for a rebound in spending, assuming consumer confidence holds.

Sales

Retail sales rebounded after the stores reopened last spring. Inevitably, the pace of the recovery has slowed in recent months with the resurgence of a more normal business environment.

The graph (see graph) shows the sales trends by type of store over the past two years. Three groups are evident. Group one includes “defensive” retailers selling essential items; grocery stores, pharmacies, hardware stores and gas stations. Sales have held up well throughout the pandemic, with those stores remaining open.

Group two includes non-core retail outlets, such as furniture and fashion stores. These have been affected by public health restrictions resulting in low sales during the lockdown. However, trade rebounded strongly once the economy reopened.

Finally, the recovery from the contraction of the third group, which includes bar sales, was delayed due to the reopening of indoor restaurants in July.

E-commerce

Internet sales have grown steadily as a proportion of total card sales between 2016-2019. However, consumers had to migrate online during the lockdowns. As a result, e-commerce sales reached nearly 70% of total spend in 2020 and 2021. While it’s too early to call a trend, the latest data suggests a return to traditional retail channels in the face of face with the reopening of stores.

Occupant market

Main Street was the hardest hit area with closures decimating footfall and store spending. This, along with Brexit, British Company Voluntary Agreements (CVA) etc., has led to an increase in the number of vacancies. However, we are encouraged by the depth of demand for active occupants on shopping streets and malls (also affected by the pandemic, albeit to a lesser extent).

A notable trend is the “direct to consumer” retailer. These international brands control their entire manufacturing and sales process, through online retailing and retailing in company-run stores. Lululemon, which recently opened at 84 Grafton Street, is a case in point. The upward trend continues as physical retailers embrace the omnichannel approach and need more space to accommodate click-and-collect sales.

As the main street and shopping malls have been put to the test, retail parks, supermarkets and neighborhood centers have shown resilience with minimal disruption to the supply chain.

Rents

Grafton Street rents fell 17.4%, from € 6,189 per m² (€ 575 per square foot) before Covid to around € 4,496 per m² (€ 475 per square foot). Larger drops of 38.9% were seen on Henry Street where Zone A rents are around € 2,960 per m² (€ 275 per square foot). The prime shopping center sector has also seen rents fall, but not as sharply as on Main Street. There will inevitably be a rebound once retail users begin to refocus on opportunities for growth and expansion.

The other major retail asset classes, grocery stores and retail parks, have shown their resilience in the face of Covid-19 and the rise of online. These sectors saw good user activity and signs of growth in rents. It should continue.

Outlook

The economy is experiencing significant momentum and forecasters have revised their employment and production projections upwards. Consumer spending is expected to rise 6.8% in 2021 and 9.6% next year (assuming there are no more bottlenecks and consumer confidence is preserved).

Ireland will remain a lucrative destination for international retailers. Vacancy rates for prime malls and shopping streets will drop significantly in 2022, as existing retailers continue to expand and new entrants enter the market. Expect some exciting new names in this space. We expect the decline in rents to ease in these sectors, but it is too early to report a rebound in rents in 2022. We remain positive on the rental outlook for commercial parks and grocery stores, which remain the commercial sub-sectors. the most resistant.

Eoin Feeney is Deputy Managing Director and Head of Retail at BNP Paribas Real Estate Ireland

Senior Tories on Saturday urged Boris Johnson to abandon plans that would see many of England’s poorest retirees pay more for their social care – or risk being forced by his own MPs into a humiliating U-turn.

The Prime Minister, still reeling from sordid allegations and the fury of “red wall” deputies over reduced rail investment in the north, faces yet another potentially damaging Commons rebellion at the hands of a party of more and more mutinous.

The Observer has learned that several Conservative MPs from the north participated in an emergency appeal put in place by Care Minister Gillian Keegan on Friday afternoon, in which she was allegedly “shown off” by backbenchers complaining that the plans were unfair and had not been fully explained or well thought out.

Former Tory chief whip Mark Harper, according to MPs on call, challenged Keegan to produce a more detailed analysis of the plans – something neither she nor the two officials present were able to do. Harper then said it would not be enough for him to produce details on voting day, which is expected to be Monday or Tuesday.

Several high-ranking Tory MPs have reportedly told Tory whips they consider voting against the plans or abstaining, unless they are amended to ensure retirees are not forced to sell their homes for pay for their care, like Johnson before. promised.

Jeremy Hunt, former health secretary and current chairman of the health select committee, said it was “deeply disappointing” that the new plans were “not as progressive” as those proposed by Andrew Dilnot, the economist who drew up the original plans for a cap on individual contributions. He said it would now be up to the government to improve rights once the cap is introduced.

Damian Green, the former Tory cabinet minister, who was also on call, told the Observer that the government should abandon the plans and adopt a system that would ensure that people could keep a percentage of their real estate assets.

“I would urge them to take a different approach,” Green said. “I think it would be infinitely better to ensure that people can keep a percentage of their real estate wealth rather than having a flat rate that applies across the country.”

Conservative WhatsApp groups are reportedly full of comments from MPs – many of whom occupy Red Wall seats – talking about a potential rebellion unless the government backs down.

Last week, as the minds of MPs shifted their focus to poverty-related issues and the decision to cut the eastern section of the high-speed line to Leeds, ministers announced changes to social protection plans , which would mean that the poorest retirees would not, after all, be able to count means-tested payments by the state for their care up to a total ceiling of £ 86,000 for any individual. It is believed that the change was made under pressure from the Treasury.

Critics said this meant that if someone with a £ 1million house would be able to protect over 90% of their assets, someone with a house worth £ 70,000 , in a less wealthy part of the country, would lose almost everything.

Dr Dan Poulter MP, who works part-time as a psychiatrist in the NHS, said the unwanted change in plans was the result of the government not setting aside enough money for social care when its main announcements on additional NHS funding and care reform were made in September.

“The initial set of proposals for a lifetime limit of £ 86,000 on social care costs was strong and addressed the unfairness of people having to sell their homes to pay for their care, but there were still questions about find out if the government sums were adding up, ”Poulter mentioned.

‘So while this policy change is surprising, I suspect it may have been prompted by the realization that an additional £ 5.6bn, while welcome, would never be enough for address both the challenges of care and the workforce in social services. as well as properly funding the introduction of a ceiling of £ 86,000 on the costs of care. Unfortunately, it will be the poorest retirees with relatively small assets who will be most affected by these changes. “

When she announced the plans last Thursday, Keegan said they would “reduce complexity” and ensure people “don’t unfairly hit the cap at an artificially faster rate than they are contributing.”

Analysis by the Observer shows that nearly three-quarters of the seats the Tories won over Labor in the last election will be among those hardest hit by these changes.

Of the 54 seats the Conservatives won from Labor in 2019, 41 have average house prices below that level. In the constituency of Burnley, for example, an average house is worth £ 99,950. In Darlington it is £ 135,000 and in Durham North West it is £ 120,000, according to recent figures from the House of Commons Library.

Appearing before a committee of MPs last week, Dilnot said about 60% of seniors who end up needing social care would lose out under government plans.

“The people hardest hit by this change are those with assets of exactly £ 106,000,” he said. “But anyone with assets below £ 186,000 would do worse with what the government is proposing than with the proposals we have made and which have been legislated. It was a big change announced yesterday. He finds savings exclusively with the less well-off groups.

Shadow Health Secretary Jonathan Ashworth said: ‘Boris Johnson’s care plans crumble into chaos, Tory MPs bicker as ministers admit they haven’t even studied how the proposals hit. disproportionately those with modest assets.

“As officials confirm these changes will hit some of the poorest retirees, many in the North and Midlands, Tory MPs must join Labor in voting against this unfair scam and demanding that ministers come back with a fair alternative . “

Charles Tallack of the Health Foundation said the average price of red-seat houses of £ 160,000 meant they were “most likely to be affected by the proposed changes”. The type of people who currently use care are also more likely to be worse off under the plans. The majority of those in care are women over 80, with a median wealth of £ 156,000.