Superquinn suppliers unsure if costs will be met by Musgrave takeover

In the wake of the Musgrave Group’s purchase of Superquinn today – The Food and Drink Industry Ireland (FDII), the Ibec group that represents the food industry, questioned whether suppliers owed up to €100m by Superquinn will be paid in full for goods provided.

Paul Kelly, FDII director, said: “Failure to pay these companies what they are rightly due will have a disastrous effect on the supply chain and affect the immediate viability of many food companies, placing thousands of jobs at risk.

“Any resolution must benefit all creditors.”

Meanwhile, ISME, the Irish Small & Medium Enterprises Association, has demanded that the Government intervene to ensure that small suppliers to Superquinn are paid for goods supplied prior to the banks putting in a receiver. The Association also insisted that Musgraves, the new owners, do the decent thing and pay the suppliers for goods, whether there is retention of title or not.

Commenting on the situation, ISME Chief Executive, Mark Fielding stated “it is outrageous that this type of legalised corporate robbery can take place under the noses of the Administration, at a time when small and medium suppliers are struggling to survive. Not alone are the suppliers not being paid for goods already sold by Superquinn but Musgraves are today, selling goods off the shelves for which they will not pay. In addition, many suppliers are carrying stock for Superquinn, already branded.”

“We also have instances of cheques issued last Friday by Superquinn, which are in the banking system and unlikely to be honoured. While the receivers say that jobs within Superquinn will be saved, there is no mention of the thousands of jobs in the SME sector, which are in jeopardy because of this corporate scandal”.

“The cavalier attitude of Superquinn management, with their weasel words about retention of title and credit insurance, must not be allowed to disguise the fact that most SME suppliers were unable to get credit insurance on their Superquinn supplies. To add insult to injury, the state rescued banks will get their pound of flesh from the receivers and sell the small businesses down the road, before they begin to harass them for inability to meet bank commitments”.