Superquinn boss quits over 'bad treatment of suppliers'
Published 21/07/2011 | 13:53
THE chief executive of Superquinn has resigned just two days after the supermarket chain was put into receivership and subsequently sold.
Andrew Street launched a blistering attack on the way suppliers are being treated since the sale of the group by the receivers KPMG to the Musgrave Group earlier this week.
In an email circulated this morning, Mr Street said the receivership process was being carried out at considerable cost to Superquinn's suppliers, and that he did not find this acceptable.
He said in the last few days it was distressing to see suppliers, who face unpaid debts of €25m, queuing in the Superquinn reception area waiting to see if they would be paid, and in many cases being turned away empty-handed.
The receivership had been imposed on the company by AIB, Bank of Ireland and National Irish Bank, who are owed €275m by the supermarket chain. It is believed Musgrave paid around €200m for the group.
Mr Street also said that the financial pain being inflicted on the suppliers was causing havoc to Superquinn's stock resupply, and that would have inevitable consequences for sales.
It is understood that the company was sold for just over €100m.
He said the board had made it consistently clear to the banks that they did not support this approach, and had called on them to have the good grace and sense to use a relatively small proportion of the substantial portion of the sale of the group to pay the suppliers in full.
However, they have refused to do this. He said he found this even more surprising as most of the suppliers were also customers of the three banks.
Andrew Street worked as chief operating officer at Dunnes Stores for 12 years before he was appointed chief executive of Superquinn last December.