Superquinn hits out after quitting

The boss of Superquinn has resigned and lashed out at banks for calling in receivers and leaving debt-hit suppliers high and dry.

Dozens of smaller businesses are chasing up to €28m worth of invoices with many owners forced to queue for payment at the retail chain’s headquarters, only to leave empty handed.

Outgoing chief executive Andrew Street personally rebuked the receivers at accountancy firm KPMG as he stepped down over the banks’ move to recoup their €275m of loans.

“This particular process has been selected by the banks in order that they can secure the maximum amount of the sale proceeds for themselves,” he said.

“This is being done at considerable cost to our suppliers. The board of Superquinn has made it clear consistently to the banks that they do not support this approach.”

Mr Street resigned in email to fellow executives.

“Over the last few days it has been distressing to see queues of suppliers in our reception waiting to see if they will be paid and, in many cases, being turned away empty-handed by the receiver,” he said.

“I had hoped to steer the company out of its difficulties and into calmer waters, and although we have made considerable progress together over the last few months, I will now not be able to complete this task.”

It is understood receivers regarded sections of the resignation email as a personal attacks after differences between the two sides were highlighted.

Business groups such as the Irish Small & Medium Enterprises Association, the Small Firms Association and Ibec’s Food and Drink Industry Ireland have demanded the receivers make money available to clear debts to suppliers.

Superquinn had about 660 suppliers and had a running debt of about €50m.

The receivers claimed that a handful of the big suppliers of meat, poultry, fruit and veg have special credit insurance which covers their invoices in the event a retail customer goes bust. It is estimated to insure about €22m of the outstanding supplier debt.

Kieran Wallace, KPMG’s joint receiver to Superquinn, said Mr Street’s resignation was regrettable.

“It is regrettable that despite Mr Street’s commitment to staff and customers earlier this week that he would continue to lead the business into the future and would work with the joint receivers, he has chosen to step aside from the business,” he said.

“All of the remaining senior management have confirmed their commitment to working with Superquinn and the loyalty shown by senior management and all of their colleagues across the business is greatly appreciated.

“We are moving quickly now to appoint a new person to lead the business in due course.”

A spokesman for Musgrave said Mr Street’s resignation would have no impact on the takeover.

All 2,800 employees have been assured their jobs are secure thanks to the sale.

Superquinn was carrying debts of more than €400m – €275mo to banks for property and mortgage borrowing, up to €150m on other obligations such as running costs and €50m for suppliers.