Superquinn sale and leaseback raises €142m
Friday May 18 2007
SUPERQUINN, which was purchased by Select Retail Holdings in 2005, has raised €142.5m on a sale and leaseback deal that will fund further expansion.
The company said yesterday that Friends First F&C has agreed an investment of €142.5m in the Superquinn property portfolio.
The cash investment, which is spread across several sites, has allowed a significant reduction in the debt incurred by Select Retail Holdings in the purchase of Superquinn.
Select Retail Holdings said this is an important step in enabling the substantial expansion planned for the Superquinn business over the next three years.
Select has also recorded a significant improvement in trading performance for the year ended April 30, 2007, with sales growth on a like-for-like basis for the first time in four years.
The newly-refurbished Superquinn stores in Blanchardstown and Lucan have traded very strongly. Plans for further refurbishment are progressing rapidly, according to the company.
Acceptance by staff of restructuring proposals in two underperforming stores means that no store closures are now envisaged.
Superquinn plans to refurbish five more sites and to open three new stores, at a cost of €60m for the year ending April 2008.
Superquinn chairman Simon Burke said: "These are two big steps forward for Superquinn. In the last year, we refocused on meeting our customers' food needs and introduced a revolutionary new design format to Superquinn stores.
"Achieving a turnaround in trading performance gives us all the confidence to increase our commitment to new stores and refurbishments, and the investment by F&C is a huge help in allowing that commitment to be financed."
Superquinn was founded in 1960 by Feargal Quinn and family. The company currently has 21 stores.
In 2005, the company was purchased by Irish consortium Select Retail Holdings, for €420m.
- Jim Aughney
