TAKEOVER DEAL:MUSGRAVE GROUP is set to open talks with unions representing Superquinn's 2,800 workers on pay, conditions and the company's pension deficit once it gets the go-ahead to take over the troubled grocery chain.
The Cork-based wholesaler and retail franchise operator yesterday confirmed that it has agreed to buy Superquinn from the receivers, Kieran Wallace and Eamonn Richardson of KPMG, who were appointed on Monday night by banks owed €275 million in property-related loans.
The deal is subject to approval from the Competition Authority, which could take at least 10 weeks to decide on whether or not to allow the transaction.
Superquinn had been in talks with unions, including Mandate, which represents retail staff and Siptu, whose services branch represents workers in its distribution arm, for some time.
Musgrave chief executive Chris Martin said yesterday that “that process will have to continue” if his company takes over the business.
Mr Martin pointed out that Musgrave is committed to the running of Superquinn’s current 24 stores, and said that this would involve getting the structure of the business right.
Mr Martin would not be drawn on how many people Superquinn is likely to employ over the longer term, but stressed that Musgrave’s agreement to buy the chain has secured the its 2,800 jobs.
The talks with existing management centred on pay and conditions at Superquinn, which was seeking to cut costs at the business.
The company’s pension fund is also in deficit, actuaries are currently working on a review that will establish the exact shortfall.
Siptu organiser Graham Macken pointed out that the union already has a relationship with Musgrave. The group is taking control of Superquinn via a new company that will be established specifically for that purpose.
This will split the trading business and its assets from the property liabilities, which remain with Select Retail Holdings, which bought the chain in 2005 for €450 million.
Musgrave will not take on any of the property liabilities, meaning that the sale will effectively mean that the price that the group is paying will settle the debt to the banks.
None of the parties involved revealed the price that Musgrave has agreed to pay yesterday. Mr Martin said that the company is paying a full price for supermarket chain.
The shareholders in Select Retail Holdings, property developers David Courtney, Bernard MacNamara, Simon Cantrell, Gerry O’Reilly, Bernard Doyle, Terry Sweeney and Kieran Ryan, will recover nothing from the sale.
