MUSGRAVE GROUP has taken the next step in its takeover of supermarket chain Superquinn with the establishment of a new operating division to run the business.

Establishing Musgrave Operating Partners Ireland is the first step in integrating Superquinn into the group, Musgrave chief executive Chris Martin said.

Musgrave’s former director of group finance and business development Tim Kenny will take over as managing director of the new division.

“Superquinn will be run within Musgrave Operating Partners Ireland under the leadership of Tim Kenny.

“Tim was instrumental in the acquisition process and it is logical that he should now lead Musgrave Operating Partners Ireland,” Mr Martin said.

“We will now apply our considerable expertise to help stabilise a business that has been greatly challenged by changes in the marketplace in recent years,” he added.

Other management figures joining the new division include Musgrave’s Eoin McCormack, who takes up the role of trading and marketing director; and Superquinn’s Richard Collins, who is the new finance director; and Clare Leonard, as HR and operations director.

The Cork-based group announced plans in July to buy Superquinn after receivers were appointed to the business, which had debts of €330 million.

Superquinn had been taken over by Select Retail Holdings for €450 million in January 2005, as part of a property play.