DESPITE the best efforts of TV chef, Jamie Oliver, the ailing supermarket chain Sainsbury's slumped to its first-ever loss after counting the cost of the restructuring needed to revive its fortunes.
In the 139-year history of middle England's former favourite grocer it's the first time that the red ink has appeared on the balance sheet .
It is the latest indignity for, which was once the UK's biggest supermarket chain. In recent years it has been overtaken by rivals Asda and Tesco.
Sainsbury's, which has stores across Hampshire employing hundreds of people, including a flagship branch in Hedge End, posted losses of £39 million in the six months to September 30, down from profits of £323 million a year earlier.
Stripping out £168 million of exceptional items, Sainsbury's achieved underlying profits of £131 million - in line with the City's recently revised expectations.
The company achieved a 3.5 per cent rise in sales to £8.35 billion, but took a hit of £401 million from the costs involved in the business review announced by chief executive Justin King last month. He wants to recruit an extra 3,000 staff, many in Hampshire, and get the retailer back to basics after sales slumped in the face of problems with product availability.
In total, the business review is expected to cost Sainsbury's £550 million over the financial year, with only the recent sale of US chain Shaw's helping to prop up the results.
As a result, analysts expect the chain to also post a small loss over the 12 month period.
Despite the loss, Sainsbury's shares held firm and chairman Philip Hampton said he believed the retailer had the building blocks in place to achieve a turnaround.
He added: "We have now embarked on a sales-led recovery, which we believe will enable Sainsbury's to deliver long-term sustainable performance and profit."
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