BRADFORD-BASED supermarket chain Morrisons made a loss of more than £1billion last year, driven by soaring financing costs as the firm's debt also grew.

The retailer, which was bought for £7bn by US private equity firm Clayton, Dubilier & Rice (CD&R) in 2021, reported the heavy loss for the year to October 29 in newly-filed Companies House accounts.

The £1.09bn pre-tax loss came after the company recorded a £1.52bn loss in the previous year.

It revealed the latest loss came after it paid out £735million of financing costs, which were partly linked to the firm's mammoth debts.

Prior to the takeover, Morrisons had net debt obligations of around £3.2bn.

The accounts showed the parent company - titled Market Topco following the takeover - had net debts of £8.5bn at the end of October last year.

Morrisons has since said it will cut its debt pile by using funds from a £2.5bn deal to sell its 337 petrol forecourts to Motor Fuel Group (MFG), which is also owned by CD&R.

In the last financial year, Morrisons also reported revenues of £18.35bn, down from £18.72bn a year earlier.

During the year, the company also reduced its staffing levels by almost 9,000 workers to just shy of 105,000 employees.

The retailer has come under significant pressure from the growth of discounter rivals, with Aldi overtaking Morrisons as the UK's fourth biggest supermarket chain in 2022.

In January, its new boss said it was developing plans to "reinvigorate, refresh and strengthen" the supermarket group.

Rami Baitieh, who was appointed chief executive of Morrisons in November, said the business had "work to do" to improve its ranges, pricing and experience for customers.

The Telegraph & Argus asked Morrisons for a response to the accounts.

A spokesperson for the company said: "Morrisons' financial performance highlights the progress the company has made.

"Morrisons has delivered six consecutive quarters of like-for-like growth, resulting in 6.5 per cent EBITDA (earnings before interest, taxes, depreciation, and amortization) growth in 2023 to £970m.

"The statutory profitability was affected by a number of non-cash items, including depreciation and amortisation, as well as exceptionals.

"The underlying performance of the business is strong."

Founded by William Morrison in 1899, the business started out as an egg and butter stall in Bradford's Rawson Market.

The company's website states it went from a Bradford market stall to become "the UK's fourth largest supermarket chain".

Morrisons has a network of 497 supermarkets based across the UK.