The sale of the Irish retailer Superquinn to Musgrave is back on track after a petition to have the company put into receivership was withdrawn. Musgrave has announced a €10 million fund to help Superquinn suppliers who were left with debts after the retailer went into receivership. The fund is primarily for those suppliers who either did not have any credit insurance in place or had it for a limited amount. Suppliers will now receive 70 per cent of what they are owed by the retailer. The Irish Farmers' Association said the fund could be the difference between viability and bankruptcy for many suppliers.
Musgrave announced it was buying Superquinn after Bank of Ireland, AIB and National Irish Bank appointed KPMG as receivers to the Irish retailer last week. Superquinn and its directors argued that the appointment of joint receivers represented a disaster for its creditors and employees. They claimed the proposed sale to the Musgrave Group was likely to lead to redundancies and trade creditors not being paid €50 million. The company asked the High Court to give it protection from its creditors and appoint an examiner to the chain. The High Court was informed that the application by Superquinn for examinership was being withdrawn after the Musgrave chain announced the establishment of the fund this morning.
Superquinn’s chief executive Andrew Street announced his resignation last week. In an e-mail to Superquinn staff, he said his decision was based primarily on the way suppliers were being treated. (28 July)
© 2011 - ESM: European Supermarket Magazine
