Since reaching agreement with the Joint Receivers on terms to purchase Superquinn, Musgrave and the Joint Receivers have engaged extensively with Superquinn suppliers and their representatives. Musgrave and the banks are aware of the challenges faced by suppliers and today (July 27th 2011) a fund has been set up to help suppliers who have experienced losses as a result of the receivership of Superquinn. The fund is fully supported by Musgrave and by the syndicate of banks to Superquinn (Bank of Ireland, NIB and AIB) and will be administered by the Joint Receivers of Superquinn.
Monies in the fund will amount to €10 million and will be made up of a financial commitment from Musgrave and from monies generated during the course of the Receivership. It is anticipated that the creation of the fund will result in all trade creditors whose losses are not covered by credit insurance recovering between 65%-70% of their losses as a result of the Superquinn receivership.
The availability of the fund to suppliers is contingent on the successful purchase of Superquinn by Musgrave. Payments out of the fund will commence as soon as the purchase process which is subject to Competition Authority approval is complete. In the intervening period, Musgrave continues to work closely with suppliers and is providing them with the opportunity to access its SuperValu, Centra and Daybreak stores.
To facilitate access to its store network, Musgrave has set up a helpline number for small Irish suppliers impacted by the events of the past week at Superquinn, which was activated this week. The helpline number is 1890 80 40 49 and further details can be found on the Musgrave website.
Commenting, Chris Martin, CEO of Musgrave said: “We are aware of the financial challenges currently being experienced by certain suppliers. This fund, in addition to access to our store network, will limit the exposure of these suppliers and will assist those companies that are in distress.
The purchase of Superquinn secures the jobs of 2,800 people. On completion of the sale Musgrave intends to invest in the stores and work with all Superquinn employees to develop the future of the business. Musgrave is committed to providing existing Superquinn suppliers with the opportunity to continue to supply Superquinn stores.”
Eamonn Richardson, Joint Receiver to Superquinn added,“We have committed substantial support to suppliers in the last week and accelerated payments in order to address their concerns. The introduction of this fund will considerably reduce the exposure for suppliers. We will continue to work closely with the supplier base over the next number of weeks and would like to sincerely thank them for their support and for working with us over the past number of days.”