THE CHIEF EXECUTIVE of Superquinn has resigned just two days after the company went into receivership.
In an email circulated to staff, Andrew Street says that the banks – Bank of Ireland, AIB, and National Irish Bank – had selected the process of receivership to ensure the maximum amount of sale proceeds for themselves, RTÉ reports.
Hours after it was announced that Superquinn was in receivership with debts of €400 million, the supermarket giant was sold to Musgraves, saving the supermarket’s 2,800 employees.
Street warned that suppliers would face a considerable shortfall with KPMG estimating they will face unpaid debts of €25 million.
His email outlined that suppliers were being turned away from the Superquinn reception area because they could not be paid and warned this may have an effect on stock resupply at the supermarket and thus have consequences on sales.
The Small Firms Association has called on the government to review how receivership works in Ireland after raising concerns about the effect the losses will have on Superquinn’s suppliers.
Patricia Callan, SFA director, explained:
For many of Superquinn’s existing small suppliers, they enjoyed a bigger percentage market share with Superquinn in relation to their own turnover, than the national average of total market share that Superquinn commanded, and thus this receivership will be very detrimental to the small food & drink supply chain.
Read:Â Superquinn workers retain conditions, while suppliers fear for payments >
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