Kwik Save, the embattled supermarkets chain, is to shut nearly a third of its stores in a radical move to cut costs and secure the future of the business.

The company said that it would close 79 stores, shrinking the size of its 226-store chain and resulting in the loss of several hundred jobs.

Shoppers were notified of the closures when they arrived at their local stores to find signs posted outside. The stores affected include outlets in Wales — in Bangor, Holyhead, Pembroke Dock, Rhyl, Risca, Pontypool and Brynmawr — as well as a number of shops in Yorkshire.

Kwik Save has also closed stores in the West Midlands and Shropshire.

The move has aroused anger from unions, who said that the scale of the closures would affect many workers.

“We will be seeking an urgent meeting with the company to clarify what redundancy package workers can expect as well as discussing the long-term future of the business,” a spokesman for Usdaw, the shopworkers’ union, said.

Kwik Save said in a statement: “It is with regret that Kwik Save has had to make this difficult decision. However, in order to enable the business to succeed, the Kwik Save management team has had to announce these cutbacks to secure the future of the business.”

It added: “Kwik Save would like to thank all of its staff affected by this regrettable situation for their commitment to the company over the years.”

The closures come amid reports that Arla Foods has stopped delivering milk to the chain, citing “payment problems”, while other unconfirmed reports suggest that bread supplies to the stores have also been halted in recent days.

The latest cash crisis comes just three months after Kwik Save benefited from a £50 million rescue package.

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