Superquinn proves crisis in retail sector
If the Government didn't know the retail industry was struggling before this, it certainly knows it after the country's third largest supermarket group was put into receivership on Monday night. While a buyer, Musgrave, luckily came forward yesterday to buy Superquinn, there is no doubt the industry is going to see more receiverships and liquidations, as long as consumer spending remains weak and rents remain too high.
In the case of Superquinn, the problems are even deeper, with owner Select Retail Holdings taking on too much debt on property deals that became a millstone once the market started turning down in 2007. Musgrave, understandably, will try and avoid taking on some of these liabilities.
Musgrave simply wants the trading business of Superquinn which fortunately is performing reasonably well in difficult circumstances.