Tedcastles Oil Products, the Irish owned energy company, is to form a new brand of convenience stores with ADM Londis.

The new brand, Londis Topshop, will be owned by Tedcastles and will operate on a franchise basis at both forecourt and high street locations.

In an alliance agreed informally between the two entities, it is envisaged that outlets of under 2,000 square feet will operate under the Londis Topshop brand while those with a larger floorspace will continue to be run by Londis. Londis will benefit through supplying the Londis Topshop chain.

ADM Londis is a grocer co-op and the members will now have to vote on the proposed alliance. A meeting is likely to take place in the near future. As part of the proposed alliance, Tedcastles has become a member of ADM Londis.

It is expected that over 128 outlets will be using the new brand within three years and will between them have a retail turnover in excess of £100 million.

During the same period Tedcastles intends investing £25 million in its retail business while Londis plans to invest more than £20 million in infrastructure and information technology. Both companies are wholly Irish owned and plan to source Irish goods, support Irish suppliers and recruit local staff. "It is expected to create over 2,000 jobs as the brand develops," according to a statement issued yesterday.

Mr Simon Healy has been appointed managing director of Londis Topshop Ltd.

In March, the 135 members of the ADM Londis co-op voted to reject a £10 million bid for the franchise by Belfast-based Hendersons. ADM Londis currently has 135 outlets.