Contingency fund secures supermarket's future
Irish-based retailer Musgrave Group has been given the go-ahead to buy Irish supermarket Superquinn - and has set up €1m fund to help suppliers who are facing losses after the supermarket went into receivership
The availability of the fund to suppliers is contingent on the successful purchase of Superquinn by Musgrave, which the company says will safeguard 2,800 jobs.
The troubled supermarket went into receivership last week and a freeze was placed on the company’s accounts, raising fears amongst suppliers. Its future was placed in limbo when two of the company directors contested the appointment of receivers and pushed to save the chain under an examiner. However, the petitions, which were due to be heard in the High Court, have been withdrawn following Musgrave’s announcement.
A statement from Musgrave said: “Musgrave believes that its agreement on terms to purchase Superquinn, which is subject to regulatory approval, is the best available option for the business. The transaction will secure the long term viability of the business, protect jobs and ensure that Irish consumers can continue to enjoy the Superquinn product offer.”
“It is anticipated that the creation of the fund will result in all trade creditors whose losses are not covered by credit insurance recovering between 65%-70% of their losses as a result of the Superquinn receivership.
“Payments out of the fund will commence as soon as the purchase process which is subject to Competition Authority approval is complete. In the intervening period, Musgrave continues to work closely with suppliers and is providing them with the opportunity to access its SuperValu, Centra and Daybreak stores.”
Chris Martin, chief executive of Musgrave, said: “The purchase of Superquinn secures the jobs of 2,800 people. On completion of the sale Musgrave intends to invest in the stores and work with all Superquinn employees to develop the future of the business. Musgrave is committed to providing existing Superquinn suppliers with the opportunity to continue to supply Superquinn stores.”
Musgrave operates a number of successful brands including Budgens and Londis.