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Musgrave sets up €10m fund for Superquinn suppliers

RETAIL group Musgrave has announced a fund of €10m to help Superquinn suppliers who were left with debts after the company went into receivership last week.

The fund is primarily for those suppliers who either did not have credit insurance or had it for a limited amount.

Musgrave is hoping to buy Superquinn and has said the sale will secure the jobs of the supermarket chain's 2,800 employees. However, suppliers were left with debts of €50m.

This fund will mean they will now receive 70pc of what they are owed.

The Irish Farmers' Association has welcomed the news and said the fund could be the difference between viability and bankruptcy for many suppliers.