Iceland has been accused of transferring “significant” sums of money from its Irish subsidiary in the lead up to the division’s sale in February.
Metron Stores, the owner of Iceland Ireland, has written to executive chairman Richard Walker with “concerns around several transactions” that took place in the run-up to its acquisition, The Telegraph reported.
The letter alleges that more than £1.37m (€1.6m) was taken out of the company’s accounts, as well as £772,476 (€900,000) from sales in the week between the deal being signed and its completion.
Metron’s letter also claims £2.23m (€2.6m) of debt was left unpaid despite Iceland agreeing to settle outstanding debts prior to the deal.
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The owner claims that the sums transferred out of the accounts by Iceland UK would have settled the debts.
It comes as Metron Stores is currently in examinership – Ireland’s version of administration – after accumulating debts of £30.9m (€36m).
Iceland UK is now understood to be considering a defamation claim against Metron, claiming its letter was an attempt to damage its reputation.
The supermarket said the sale agreement gave it rights to all cash balances and revenues accrued up to the completion date.
A spokesman for Iceland told the publication: “All normal trade debts of Iceland Ireland up to the date of the sale were settled by Iceland UK, and employees paid in full.
“[Iceland is] entitled to the revenue generated from sales up to the date of sale and this is why funds were transferred from the company’s bank accounts to Iceland UK prior to completion.”
The supermarket sold its Irish arm to The Project Point Technologies earlier this year for £0.8 (€1). Iceland Ireland was renamed Metron Stores shortly after the transaction, but its stores still trade under the Iceland fascia.
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