‘Banks behind Superquinn deal should repay suppliers for goods’

THE banks behind the Superquinn sale to the Musgrave Group should repay suppliers for goods delivered on credit from the moment the receivers were engaged, says IFA president John Bryan.

Industry sources suggest that Bank of Ireland, AIB and Northern Irish Bank engaged receivers four months ago to review Superquinn’s financial situation. The receivers confirmed to the IFA that they have been engaged for “a significant amount of time” by the banks.

The receivers said that €50m was owed to Superquinn’s suppliers. Of this, €22m had been insured against credit risk. The receivers said they are not responsible for the other €28m, a decision which industry bodies claim will hit smaller suppliers worst.