CASH-AND-CARRY group Musgrave has begun a comprehensive review of its Superquinn subsidiary, which it acquired in October 2011 for €229 million.

“We are undertaking a review of the business but there are no stores identified for closure at this point,” Musgrave chief executive Chris Martin said yesterday.

Superquinn operates 24 shops, and Mr Martin said that while its performance is “improving”, its turnover continues to fall.

Sales were declining by about 7 per cent annually when Musgrave acquired the business from consortium Select Retail Holdings. This has slowed to about 4 per cent.

The acquisition of Superquinn resulted in Musgrave moving from a net cash position of €21 million in 2010 to a net debt of €187 million at the end of last year, according to its annual report.

Mr Martin said the Superquinn business has been “stabilised”, with a new leadership team appointed and new governance structures put in place.

“Our focus has been to get the fundamentals right and follow that with investment,” he said, adding that Superquinn is rating highly in “mystery shopper” scores.

Superquinn, which has 850 staff, contributed sales of €116 million to Musgrave in 2011 following its acquisition on October 10th.

It will account for about 10 per cent of Musgrave’s total turnover, indicating annual sales of about €450 million.

Tangible assets of €152 million were acquired as part of the Superquinn transaction with goodwill on the deal of €103 million.

Musgrave also assumed a €14 million pension liability on acquiring Superquinn.