Betfred to begin Tote shake-up after winning bid

By SARAH BRIDGE FOR THE MAIL ON SUNDAY
Updated: 17:21 EST, 4 June 2011

Betfred, the new owner of the Tote bookmaking chain, is to meet with its management to set out its plans for the former State-owned organisation.

A Tote source said: ‘There will be some relief because the process has now ended but there will be some nervousness over jobs. But there is a lot of experience in the company that hasn’t been utilised to the fullest and which are gems to be discovered.’

Betfred boss Fred Done last month told Financial Mail: ‘Tote is the most underworked, under-performing business of all the big brands. It hasn’t been allowed to breathe. But there is talent there.’

Shake-up: A Tote source admitted that there will be some nervousness over jobs following the Betfred deal

Betfred beat Sir Martin Broughton’s vehicle Sports Investment Partners last week in a tight bid process. The deal is worth £265million and includes debt and pensions, with Betfred paying an initial £150million and a further £115million over the length of a seven-year licence to operate pools betting on UK racecourses.

The enlarged company will have 1,350 stores and 9,000 employees and it is understood that Betfred has pledged not to lose more than 150 jobs in the first year. Cuts will most probably be made at head office where there are duplicated positions.

The search is now on for a chief executive, on the insistence of the banks that are financing the deal. Possible candidates include Carl Leaver, chief executive of Gala Coral. Fred Done will remain a ‘hands-on’ chairman.