Vantage Wholesale, the company which owns the Costcutter franchised store chain, claims that several prominent store owners with ADM Londis have joined their operation.

According to Vantage, a number of the retailers who have decided to join Costcutter were board members of ADM Londis until recently. Nobody from ADM Londis was available for comment last night.

Some of the retailers have been leading members of the ADM Londis group for several years, according to Vantage which set up the Costcutter operation in February.

Among the retailers who have signed a contract with Vantage are Mr Danny Horkan of Templeogue, Co Dublin, Mr Dan Doolan of Clane, Co Kildare and Mr Paddy Kehoe of Ballymun Avenue, Glasnevin, Co Dublin. These retailers have an annual turnover of more than £15 million between them, according to Vantage.

Vantage has denied weekend media reports that it is paying ADM Londis members payments to induce them to switch to Costcutter. "We reject any suggestion that hello money is being paid" said the spokeswoman last night.

She added that buying out the ADM Londis shareholders did not mean that Vantage is attempting to take a stake in ADM Londis. Some weekend reports suggested that Vantage might make a bid for ADM Londis from a minority position. However, the spokeswoman said this is highly unlikely.

A number of ADM Londis retailers were known to be unhappy with the decision of the company made in March to reject a £10 million bid for the franchise operation from Northern Ireland retailing group, Hendersons. A store on Collins Avenue in Whitehall recently became the first Vantage Costcutter store to open in the Republic. An additional 15 formal applications for membership are currently being processed.