OFF licence shops in East Lancashire could be under threat after a merger of two of Britain's biggest chains.

The Victoria Wine and Thresher chains, owned by Allied Domecq and Whitbread, are joining forces to create a major force in the industry with almost 3,000 shops.

Victoria Wine has shops in Blackburn and Burnley while Thresher operates outlets in Clitheroe, Padiham and Whalley and Drinks Cabin shops in Accrington, Haslingden, Rawtenstall and Rishton.

A Whitbread spokeswoman said the merger was likely to result in the closure of many shops.

"The initial rationalisation will probably involve the closure of 300 shops over a period of three years," she said. "After that, we believe the strength of the combined businesses will reduce the need for closures in the future."

Over the past two years, Victoria Wine and Thresher have closed around 200 shops between them.

The spokeswoman claimed the next round of closures was not radically different from the on-going rationalisation in the sector. The new business should come into being on August 30 and is expected to have sales of more than £1.3 billion a year. The two groups will each own half of the new company.

In a statement Allied and Whitbread said: "It will be able to compete effectively with the large supermarket chains, whose scale has enabled them to take an increasing share of the sector."

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