Creditors expected to get about half of €51m owed to them

SUPERQUINN’S suppliers are owed a total of €51 million and are likely to recover about half of that directly from the receivers, who took over the supermarket chain on behalf of its banks this week.

Receivers Kieran Wallace and Eamonn Richardson of KPMG, who took control of the business on Monday night, estimate that there is €51 million due to unsecured creditors, a group largely made up of suppliers of goods and services to the company.

Of that, the value of stock on the shelves comes to somewhere in the mid-€20 million range.

The receivers are committed to paying for that, leaving a shortfall of roughly the same level.

They will try to fast-track payments to suppliers for these goods and have also asked that creditors who are facing difficulties of their own to speak directly to them.

The receivers are likely to have control of the business until at least mid-September.

They are committed to paying for all goods and services purchased during their period in charge.

At least some of Superquinn’s suppliers have credit insurance. UK-based Atradius, one of two companies which provides such cover, confirmed yesterday that they had insured clients who did business with the supermarket chain.

Chris Martin, chief executive of Musgrave’s, which, pending Competition Authority approval, is set to take over Superquinn, said yesterday that that company wanted to maintain relationships with the chain’s existing suppliers.

Mr Wallace said yesterday that Superquinn had more than 900 suppliers.

He added that he and his colleagues had been in touch with more than 60 per cent of them since taking the helm on Monday night.

He stressed that none of those contacted had problems with doing business with Superquinn in the future.

“We would like to thank them for their support,” Mr Wallace added.