Costcutter Supermarkets Group has signed a £35m refinancing deal with Barclays to support the transition to its new partnership with Palmer and Harvey.

The three-year term of the refinancing is intended to support business growth and the new joint venture buying group.

Bob Marshall, financial director of Costcutter Supermarkets Group, said: “Having the support of Barclays for the next three years as the business manages the current period of transition and embarks upon its growth strategy is very positive.

“In Barclays, we believe we have the ideal partner for supporting the business investments we need to make.”

The BuyCo joint venture buying group brings the 800 Mace, Your Store and Supershop stores into Costcutter Supermarkets Group, with P&H providing wholesale deliveries over the eight-year period of the contract.