Musgrave Group purchases Superquinn chain

The Musgrave Group has purchased Superquinn, subject to regulatory approval.

A receiver was appointed to the supermarket chain last night, raising concerns about the future of more than 2,800 workers.

However, the jobs look to have been secured after a deal was struck between Musgraves and the receiver KPMG. The price has not been revealed.

Musgraves, which owns the SuperValu and Centra among others, says the deal will secure the long-term viability of Superquinn and will protect jobs.

"The transaction will secure the long term viability of the Superquinn business, protect jobs and ensure that Irish consumers can continue to enjoy the Superquinn product offer," said a statement from the Musgrave Group.

"Superquinn will remain under the management of the joint receivers pending regulatory approval and the completion of the transaction."

"Musgrave, which is an Irish family owned company, will use its significant brand expertise to develop the Superquinn business by investing in the stores and bringing value to the Superquinn shopper.

"Superquinn has been challenged by the scale of its debt burden and the difficult trading environment. This purchase secures the jobs of 2,800 people and on completion of the sale process, Musgrave intends to invest in the stores and work with the Superquinn employees to develop the future of the business.

"Musgrave already has a strong commitment to Irish suppliers which helps support 14,000 jobs across 600 supplier companies and contributes €2.9bn to the Irish economy. Musgrave is committed to providing existing Superquinn suppliers with the opportunity to continue to supply Superquinn stores."

Commenting Chris Martin, CEO, Musgrave said: “Having come to this agreement with the Joint Receivers, we are excited by this opportunity. Purchasing Superquinn, when approved, supports our growth agenda and will sustain our competitiveness. We are looking forward to working with the Superquinn team to develop the future of the business.”

Kieran Wallace and Eamonn Richardson, of accountancy firm KPMG, were appointed joint receivers and managers to the Superquinn Group yesterday by Bank of Ireland, Allied Irish Banks and National Irish Bank.

Mr Richardson said the group had been operating in a tough trading environment and had been heavily indebted primarily due to property-related loans.

Superquinn was founded by Feargal Quinn in 1960 and remained in the family's hands until until 2005 when it became a subsidiary of Select Retail Holdings Limited.

It has 23 stores across Ireland, with 14 in Dublin.