Food wholesaler Musgrave Group has reached an agreement to purchase the Irish supermarket Superquinn, it was announced today.
The grocer went into receivership last night after struggling to deal with huge debts and a tough consumer environment, but Musgrave’s offer to buy the business will help secure the jobs of 2,800 members of staff and keep the supermarket’s brand alive.
Superquinn will remain under the management of joint receivers, including KPMG, while regulatory approval is sought and the consequent completion of the transaction takes place.
Irish family owned company Musgrave, which already operates brands such as Centra in its home country and Budgens and Londis in the UK, has stated that it intends to invest in the Supequinn stores and maintain relationships with the grocer’s current supplier network.
Chris Martin, CEO of Musgrave, said: “Having come to this agreement with the joint receivers, we are excited by this opportunity.
“Purchasing Superquinn, when approved, supports our growth agenda and will sustain our competitiveness.”
In December last year Superquinn appointed former Boots director Andrew Street as CEO, who was tasked with helping turn around the company’s fortunes and growing the retailer’s store portfolio.
Problems with the Irish economy and low consumer confidence across the country have had a negative impact on sales at the supermarket group, leading to today’s takeover offer from Musgrave.
Martin added: “We are looking forward to working with the Superquinn team to develop the future of the business.”