Donnybrook Fair was in breach of bank covenants ahead of sale to SuperValu owner Musgrave
High-end supermarket Donnybrook Fair was in breach of its banking covenants last year, ahead of its sale to SuperValu brand owner Musgrave.
Sales fell 6.6pc in the year ending January 31 2018, with the grocer hit by competition in the retail trade, and development works which disrupted footfall at one of its stores, according to newly filed accounts.
Rival supermarkets have been putting increasing emphasis on premium products, with an improving economy meaning Irish shoppers are increasingly willing to splash out on more expensive groceries.
“Although in breach of bank covenants the directors believe they will have the support of the banks for a period of least 12 months from the date of approval of the financial statements,” the accounts, dated July 32018, state.
The company’s sale to Musgrave was announced in September. The accounts also state that Joe and Mary Doyle, the business’s former owners, had given personal guarantees of €6.3m in favour of Bank of Ireland, relating to Donnybrook Fair borrowings.