Suppliers to Superquinn could be left high and dry after sale
Published 19/07/2011 | 12:49
Hundreds of suppliers to Superquinn owed up to €100m could be left high and dry following the sale of the supermarket group to Musgrave.
There are 660 suppliers to the group which was sold to Musgrave just hours after it went into receivership.
While the receiver, KPMG’s Kieran Wallace, has said every attempt will be made to pay suppliers it is understood many of the smaller ones do not have insurance.
The bigger suppliers, of meat, chicken and fruit and vegetables do have insurance, sources close to the company said today.
Of the €400m owed by Select Retail Holdings, the company behind Superquinn, €275m is owed to Bank of Ireland, National Irish Bank and Allied Irish Banks with the lion’s share of the debt related to property write-downs.
A further €150m is also owed to other creditors although it is not known who they are.
In receivership cases, only secured creditors are guaranteed payment.
Meanwhile, unions have also expressed concern for the 2,800 employees at the company despite further assurances that they are safe.
“We are seeking an urgent meeting with the company and the receiver to discuss the implications of this development,” said SIPTU organiser Graham Macken,
“We will also meet as soon as possible with any new owners to ensure that the jobs of our members and the terms and conditions of their employment are protected.”
Wholesaler Musgrave also owns the Supervalue, Centra and Mace stores.