Musgrave cleared to buy Superquinn

THE Competition Authority has cleared the way for major food chain Musgrave to take over struggling Superquinn.

In a statement released yesterday, the authority said it was allowing the purchase — which will secure the long-term viability of Superquinn, and 2,800 jobs at the chain — and saw no grounds to stand it the deal’s way.

The Musgrave group has been seeking permission to take over Superquinn since July, when the chain’s directors dropped a legal challenge to put the business into examinership after the Musgrave Group announced plans for a €10 million fund to pay suppliers who lost money when the store went into receivership.

Musgrave’s chief executive, Chris Martin, said the authority’s decision “clears the way for us to complete the purchase”.

The deal is set to go through on October 11.

“The purchase of Superquinn supports our growth agenda and will sustain our competitiveness.

“We will apply our considerable expertise to help stabilise a business that has been greatly challenged by the changes in the market place in recent years.

“In a declining market where consumers are spending less and continuously looking for value, Superquinn has struggled to retain market share.

“Working with the Superquinn team, we will tackle these considerable challenges to stabilise the business and develop it for the future,” he said.

Musgrave agreed to buy Superquinn, which had owed over €400m worth of debt, in July.

The group is funding suppliers who have experienced losses that are not covered by credit insurance as a result of the receivership. While the fund is not able to cover all related debts, it is compensating the vast majority of people and businesses affected by the earlier disturbances at Superquinn.